Federal Register / Vol. 63, No. 134 /Tuesday, July 14, 1998 / Notices 37829

Signed at Washington, DC, on July 6, 1998.

Richard O. Newman,

Acting Executive Vice President, Commodity

Credit Corporation.

[FR Doc. 98–18663 Filed 7–13–98; 8:45 am]

BILLING CODE 3410–05–P

DEPARTMENT OF AGRICULTURE

Federal Crop Insurance Corporation

Crop Revenue Coverage

ACTION: Notice of availability.

SUMMARY: In accordance with section

508(h) of the Federal Crop Insurance

Act (Act), the Federal Crop Insurance

Corporation (FCIC) Board of Directors

(Board) approves for reinsurance and

subsidy the insurance of wheat in select

states and counties under the Crop

Revenue Coverage (CRC) plan of

insurance for the 1999 crop year. This

notice is intended to inform eligible

producers and the private insurance

industry of the CRC coverage changes

for wheat and provide its terms and

conditions.

FOR FURTHER INFORMATION CONTACT: Tim

Hoffmann, Director, Product

Development Division, Federal Crop

Insurance Corporation, United States

Department of Agriculture, 9435 Holmes

Road, Kansas City, Missouri, 64131,

telephone (816) 926-7387.

SUPPLEMENTARY INFORMATION: Section

508(h) of the Act allows for the

submission of a policy to FCIC’s Board

and authorizes the Board to review and,

if the Board finds that the interests of

producers are adequately protected and

that any premiums charged to the

producers are actuarially appropriate,

approve the policy for reinsurance and

subsidy in accordance with section

508(e) of the Act.

In accordance with the Act, the Board

approved a program of insurance known

as CRC, originally submitted by

American Agrisurance, a managing

general agency for Redland Insurance

Company.

The CRC program has been approved

for reinsurance and premium subsidy,

including subsidy for administrative

and operating expenses. CRC is

designed to protect producers against

both price and yield losses. CRC

provides a harvest revenue guarantee

that pays losses from the established

yield coverage at a higher price if the

harvest time price is higher than the

spring price.

In the 1996 crop year, the CRC

program was available for corn and

soybeans in all counties in Iowa and

Nebraska. In the 1997 crop year, the

CRC program was expanded for corn

into Colorado, Illinois, Indiana, Kansas,

Michigan, Minnesota, Missouri, Ohio,

Oklahoma, South Dakota, and Texas,

and soybeans into Illinois, Indiana,

Kansas, Michigan, Minnesota, Missouri,

Ohio, Oklahoma, South Dakota, and

Texas. New CRC programs were also

made available for grain sorghum in

Colorado, Nebraska, Oklahoma, and

crop reporting districts 20, 30, 50, and

70 in Kansas, 40 in Missouri, 50 and 80

in South Dakota, and 40, 51, 52, 81, 82,

90, 96, and 97 in Texas; for cotton in

Arizona, Georgia, Oklahoma, and crop

reporting districts 11, 12, 21, and 22 in

Texas; and for wheat into Kansas,

Michigan, Minnesota, Nebraska, South

Dakota, Texas, Washington, and twentythree counties each in Montana and

North Dakota.

In the 1998 crop year, the CRC

program was expanded for corn into

Alabama, Arizona, Arkansas, California,

Georgia, Idaho, Kentucky, Louisiana,

Mississippi, Montana, New Mexico,

North Carolina, North Dakota, Oregon,

South Carolina, Tennessee, Utah,

Virginia, Washington, Wisconsin, and

Wyoming; for soybeans into Alabama,

Arkansas, Georgia, Kentucky, Louisiana,

Mississippi, North Carolina, North

Dakota, South Carolina, Tennessee,

Virginia, and Wisconsin; for grain

sorghum into Alabama, Arkansas,

California, Georgia, Illinois, Indiana,

Iowa, Kentucky, Louisiana, Michigan,

Minnesota, Mississippi, New Mexico,

North Carolina, North Dakota, Ohio,

South Carolina, Tennessee, Virginia,

Wisconsin, and the remaining counties

in Kansas, Missouri, South Dakota, and

Texas; for cotton into Alabama,

Arkansas, California, Kansas, Louisiana,

Mississippi, Missouri, New Mexico,

North Carolina, South Carolina,

Tennessee, Virginia, and the remaining

counties in Texas; and for wheat into

Alabama, Arizona, Arkansas, California,

Colorado, Georgia, Idaho, Illinois,

Indiana, Iowa, Kentucky, Louisiana,

Mississippi, Missouri, New Mexico,

North Carolina, Ohio, Oklahoma,

Oregon, South Carolina, Tennessee,

Utah, Virginia, Wisconsin, Wyoming,

and remaining counties in Montana and

North Dakota.

Prior to the 1998 crop year, the CRC

policy only provided coverage for basic

and optional units, as selected by the

insured. The expected market price was

also based on 95 percent of the average

daily settlement price prior to the 1998

spring crops. Beginning with the 1998

crop year, insureds could select basic,

optional or enterprise units for corn and

soybeans and 95 or 100 percent of the

average daily settlement price for corn,

grain sorghum, soybeans and cotton.

The CRC program was also changed to

provide insurance for any producer that

had been identified on the nonstandard

underwriting classification system

(NCS).

Beginning with the 1999 crop year for

CRC wheat, producers may select basic,

optional or enterprise units, 95 or 100

percent of the average daily settlement

price, coverage for all acreage classified

as high risk, and a separate price for

durum wheat. A methodology has also

been developed for determining the

spring wheat Base Price in counties that

have both fall and spring wheat

programs, but only a fall cancellation

date.

FCIC herewith gives notice of the

above stated changes for the 1999 crop

year for CRC wheat for use by private

insurance companies.

The CRC underwriting rules, rate

factors and forms for wheat will be

released electronically to all reinsured

companies through FCIC’s Reporting

Organization Server. FCIC will also

make available the terms and conditions

of the CRC reinsurance agreement.

Requests for this information should be

sent to Heyward Baker, Director,

Reinsurance Services Division, Federal

Crop Insurance Corporation, 1400

Independence Avenue, S.W., Stop 0804,

Room 6727-S, Washington, D.C., 20250–

0804.

Following is a complete list of

insurable CRC crops by state for the

1999 crop year:

Alabama—Corn, Cotton, Grain

Sorghum, Soybeans, Wheat

Arizona—Corn, Cotton, Wheat

Arkansas—Corn, Cotton, Grain

Sorghum, Soybeans, Wheat

California—Corn, Cotton, Grain

Sorghum, Wheat

Colorado—Corn, Grain Sorghum, Wheat

Georgia—Corn, Cotton, Grain Sorghum,

Soybeans, Wheat

Idaho—Corn, Wheat

Illinois—Corn, Grain Sorghum,

Soybeans, Wheat

Indiana—Corn, Grain Sorghum,

Soybeans, Wheat

Iowa—Corn, Grain Sorghum, Soybeans,

Wheat

Kansas—Corn, Cotton, Grain Sorghum,

Soybeans, Wheat

Kentucky—Corn, Grain Sorghum,

Soybeans, Wheat

Louisiana—Corn, Cotton, Grain

Sorghum, Soybeans, Wheat

Michigan—Corn, Grain Sorghum,

Soybeans, Wheat

Minnesota—Corn, Grain Sorghum,

Soybeans, Wheat

Mississippi—Corn, Cotton, Grain

Sorghum, Soybeans, Wheat

Missouri—Corn, Cotton, Grain

Sorghum, Soybeans, Wheat
37830 Federal Register / Vol. 63, No. 134 /Tuesday, July 14, 1998 / Notices

Montana—Corn, Wheat

Nebraska—Corn, Grain Sorghum,

Soybeans, Wheat

New Mexico—Corn, Cotton, Grain

Sorghum, Wheat

North Carolina—Corn, Cotton, Grain

Sorghum, Soybeans, Wheat

North Dakota—Corn, Grain Sorghum,

Soybeans, Wheat

Ohio—Corn, Grain Sorghum, Soybeans,

Wheat

Oklahoma—Corn, Cotton, Grain

Sorghum, Soybeans, Wheat

Oregon—Corn, Wheat

South Carolina—Corn, Cotton, Grain

Sorghum, Soybeans, Wheat

South Dakota—Corn, Grain Sorghum,

Soybeans, Wheat

Tennessee—Corn, Cotton, Grain

Sorghum, Soybeans, Wheat

Texas—Corn, Cotton, Grain Sorghum,

Soybeans, Wheat

Utah—Corn, Wheat

Virginia—Corn, Cotton, Grain Sorghum,

Soybeans, Wheat

Washington—Corn, Wheat

Wisconsin—Corn, Grain Sorghum,

Soybeans, Wheat

Wyoming—Corn, Wheat

Notice: The Basic Provisions, Crop

Provisions, Winter Wheat Coverage

Endorsement, and Commodity Exchange

Endorsement for the 1999 CRC winter

wheat program of insurance are as

follows.

Crop Revenue Coverage Insurance

Policy

(This is a continuous policy. Refer to

section 3.)

This policy is reinsured by the

Federal Crop Insurance Corporation

(FCIC) under the authority of section

508(h) of the Federal Crop Insurance

Act, as amended (7 U.S.C. 1508(h)). The

provisions of the policy may not be

waived or varied in any way by the crop

insurance agent or any other agent or

employee of the company. In the event

the company cannot pay a loss, the

claim will be settled in accordance with

the provisions of the policy and paid by

FCIC. No state guarantee fund will be

liable to pay the loss. Throughout the

policy, ‘‘you’’ and ‘‘your’’ refer to the

named insured shown on the accepted

application and ‘‘we,’’ ‘‘us,’’ and ‘‘our’’

refer to the company. Unless the context

indicates otherwise, use of the plural

form of a word includes the singular

and use of the singular form of the word

includes the plural.

Agreement to Insure: In return for the

payment of the premium, and subject to

all of the provisions of this policy, the

company agrees with the insured to

provide the insurance as stated in the

policy. If a conflict exists among the

policy provisions, the order of priority

is as follows: (1) the Special Provisions;

(2) the Commodity Exchange

Endorsement; (3) the Crop Provisions;

and (4) these Basic Provisions, with (1)

controlling (2), etc.

Basic Provisions

Terms and Conditions

1. Definitions

Abandon. Failure to continue to care

for the crop, providing care so

insignificant as to provide no benefit to

the crop, or failure to harvest in a timely

manner, unless an insured cause of loss

prevents you from properly caring for or

harvesting the crop or causes damage to

it to the extent that most producers of

the crop on acreage with similar

characteristics in the area would not

normally further care for or harvest it.

Acreage report. A report required by

section 7 of these Basic Provisions that

contains, in addition to other required

information, your report of your share of

all acreage of an insured crop in the

county, whether insurable or not

insurable.

Acreage reporting date. The date

contained in the Special Provisions or

as provided in section 7 by which you

are required to submit your acreage

report.

Act. The Federal Crop Insurance Act,

(7 U.S.C. 1501 et seq.).

Actuarial documents. The material for

the crop year which is available for

public inspection in your agent’s office,

and which show the revenue

guarantees, coverage levels, premium

rates, practices, insurable acreage, and

other related information regarding crop

insurance in the county.

Agricultural commodity. All insurable

crops and other fruit, vegetable or nut

crops produced for human or animal

consumption.

Another use, notice of. The written

notice required when you wish to put

acreage to another use (see section 15).

Application. The form required to be

completed by you and accepted by us

before insurance coverage will

commence. This form must be

completed and filed in your agent’s

office not later than the sales closing

date of the initial insurance year for

each crop for which insurance coverage

is requested. If cancellation or

termination of insurance coverage

occurs for any reason, including but not

limited to indebtedness, suspension,

debarment, disqualification,

cancellation by you or us, or violation

of the controlled substance provisions of

the Food Security Act of 1985, a new

application must be filed for the crop.

Insurance coverage will not be provided

if you are ineligible under the contract

or under any Federal statute or

regulation.

Approved yield. The yield determined

in accordance with 7 CFR part 400,

subpart (G). This yield is established for

basic or optional units. The Approved

Yield for each basic unit comprising an

enterprise unit is retained for premium

and final guarantee purposes under an

enterprise unit.

Assignment of indemnity. A transfer

of policy rights, made on our form, and

effective when approved by us. It is the

arrangement whereby you assign your

right to an indemnity payment to any

party of your choice for the crop year.

Base Price. The initial price

determined in accordance with the

Commodity Exchange Endorsement and

used to calculate your premium and

Minimum Guarantee.

CRC low price factor. A premium

factor, as set forth in the actuarial

documents, used to calculate the risk

associated with a decrease in the

Harvest Price relative to the Base Price.

CRC high price factor. A premium

factor, as set forth in the actuarial

documents, used to calculate the risk

associated with an increase in the

Harvest Price relative to the Base Price.

CRC rate. A premium rate, as set forth

in the actuarial documents, used to

calculate the risk associated with

producing a level of production.

Cancellation date. The calendar date

specified in the Crop Provisions on

which coverage for the crop will

automatically renew unless canceled in

writing by either you or us, or

terminated in accordance with the

policy terms.

Claim for indemnity. A claim made on

our form by you for damage or loss to

an insured crop and submitted to us not

later than 60 days after the end of the

insurance period (see section 15.)

Consent. Approval in writing by us

allowing you to take a specific action.

Contract. (see ‘‘policy’’.)

Contract change date. The calendar

date by which we make any policy

changes available for inspection in the

agent’s office (see section 5.)

County. Any county, parish, or other

political subdivision of a state shown on

your accepted application, including

acreage in a field that extends into an

adjoining county if the county boundary

is not readily discernible.

Coverage. The insurance provided by

this policy, against insured loss of

revenue by unit as shown on your

summary of coverage.

Coverage begins, date. The calendar

date insurance begins on the insured

crop, as contained in the Crop

Provisions, or the date planting begins
Federal Register / Vol. 63, No. 134 /Tuesday, July 14, 1998 / Notices 37831

on the unit (see section 12 of these Basic

Provisions for specific provisions

relating to prevented planting.)

Crop Provisions. The part of the

policy that contains the specific

provisions of insurance for each insured

crop.

Crop year. The period within which

the insured crop is normally grown and

designated by the calendar year in

which the insured crop is normally

harvested.

Damage. Injury, deterioration, or loss

of revenue of the insured crop due to

insured or uninsured causes.

Damage, notice of. A written notice

required to be filed in your agent’s office

whenever you initially discover the

insured crop has been damaged to the

extent that a loss is probable (see section

15.)

Days. Calendar days.

Deductible. The amount determined

by subtracting the coverage level

percentage you choose from 100

percent. For example, if you elected a 65

percent coverage level, your deductible

would be 35 percent (100%—65% =

35%).

Delinquent account. Any account you

have with us in which premiums, and

interest on those premiums is not paid

by the termination date specified in the

Crop Provisions, or any other amounts

due us, such as indemnities found not

to have been earned, which are not paid

within 30 days of our mailing or other

delivery of notification to you of the

amount due.

Earliest planting date. The earliest

date established for planting the insured

crop (see Special Provisions and section

14.)

End of insurance period, date of. The

date upon which your crop insurance

coverage ceases for the crop year (see

Crop Provisions and section 12.)

FCIC. The Federal Crop Insurance

Corporation, a wholly owned

government corporation within USDA.

Field. All acreage of tillable land

within a natural or artificial boundary

(e.g., roads, waterways, fences, etc.)

Final Guarantee. The number of

dollars guaranteed per acre determined

to be the higher of the Minimum

Guarantee or the Harvest Guarantee,

where:

(1) Minimum Guarantee—The

Approved Yield per acre multiplied by

the Base Price multiplied by the

coverage level percentage you elect.

(2) Harvest Guarantee—The Approved

Yield per acre multiplied by the Harvest

Price, multiplied by the coverage level

percentage you elect.

If you elect enterprise unit coverage,

the Basic Units comprising the

enterprise unit will retain separate Final

Guarantees.

Final planting date. The date

contained in the Special Provisions for

the insured crop by which the crop

must initially be planted in order to be

insured for the full Final Guarantee.

FSA. The Farm Service Agency, an

agency of the USDA, or a successor

agency.

FSA farm serial number. The number

assigned to the farm by the local FSA

office.

Good farming practices. The cultural

practices generally in use in the county

for the crop to make normal progress

toward maturity and produce at least

the yield used to determine the Final

Guarantee and are those recognized by

the Cooperative State Research,

Education, and Extension Service as

compatible with agronomic and weather

conditions in the county.

Harvest Price. The final price

determined in accordance with the

Commodity Exchange Endorsement and

used to calculate your Calculated

Revenue (as defined in the Crop

Provisions) and the Harvest Guarantee.

Insured. The named person shown on

the application accepted by us. This

term does not extend to any other

person having a share or interest in the

crop (for example, a partnership,

landlord, or any other person) unless

specifically indicated on the accepted

application.

Insured crop. The crop for which

coverage is available under these Basic

Provisions and the applicable Crop

Provisions as shown on the application

accepted by us.

Interplanted. Acreage on which two

or more crops are planted in a manner

that does not permit separate agronomic

maintenance or harvest of the insured

crop.

Irrigated practice. A method of

producing a crop by which water is

artificially applied during the growing

season by appropriate systems and at

the proper times, with the intention of

providing the quantity of water needed

to produce at least the yield used to

establish the Final Guarantee on the

irrigated acreage planted to the insured

crop.

Late planted. Acreage initially

planted to the insured crop after the

final planting date.

Late planting period. The period that

begins the day after the final planting

date for the insured crop and ends 25

days after the final planting date, unless

otherwise specified in the Crop

Provisions or Special Provisions.

Loss, notice of. The notice required to

be given by you not later than 72 hours

after certain occurrences or 15 days after

the end of the insurance period,

whichever is earlier (see section 15.)

MPCI. Multiple peril crop insurance

program, a program of insurance offered

under the Federal Crop Insurance Act,

as amended (7 U.S.C. 1501 et seq.) (Act)

and implemented in 7 CFR chapter IV.

Negligence. The failure to use such

care as a reasonably prudent and careful

person would use under similar

circumstances.

Non-contiguous. Any two or more

tracts of land whose boundaries do not

touch at any point, except that land

separated only by a public or private

right-of-way, waterway, or an irrigation

canal will be considered as contiguous.

Palmer Drought Severity Index. A

meteorological index calculated by the

National Weather Service to indicate

prolonged and abnormal moisture

deficiency or excess.

Person. An individual, partnership,

association, corporation, estate, trust, or

other legal entity, and wherever

applicable, a State or a political

subdivision or agency of a State.

‘‘Person’’ does not include the United

States Government or any agency

thereof.

Planted acreage. Land in which seed,

plants, or trees have been placed

appropriate for the insured crop and

planting method, at the correct depth,

into a seedbed that has been properly

prepared for the planting method and

production practice.

Policy. The agreement between you

and us consisting of the accepted

application, these Basic Provisions, the

Crop Provisions, the Special Provisions,

other applicable endorsements or

options, the actuarial documents for the

insured crop, and the applicable

regulations published in 7 CFR chapter

IV.

Practical to replant. Our

determination, after loss or damage to

the insured crop, based on all factors,

including, but not limited to moisture

availability, marketing window,

condition of the field, and time to crop

maturity, that replanting the insured

crop will allow the crop to attain

maturity prior to the calendar date for

the end of the insurance period. It will

not be considered practical to replant

after the end of the late planting period,

or the final planting date if no late

planting period is applicable, unless

replanting is generally occurring in the

area. Unavailability of seed or plants

will not be considered a valid reason for

failure to replant.

Premium billing date. The earliest

date upon which you will be billed for

insurance coverage based on your

acreage report. The premium billing
37832 Federal Register / Vol. 63, No. 134 /Tuesday, July 14, 1998 / Notices

date is contained in the Special

Provisions.

Prevented planting. Failure to plant

the insured crop with proper equipment

by the final planting date designated in

the Special Provisions for the insured

crop in the county or by the end of the

late planting period. You must have

been prevented from planting the

insured crop due to an insured cause of

loss that also prevented most producers

from planting on acreage with similar

characteristics in the surrounding area.

Production report. A written record

showing your annual production and

used by us to determine your yield for

insurance purposes (see section 4). The

report contains yield information for

previous years, including planted

acreage and harvested production. This

report must be supported by written

verifiable records from a warehouseman

or buyer of the insured crop, by

measurement of farm-stored production,

or by other records of production

approved by us on an individual case

basis.

Replanting. Performing the cultural

practices necessary to prepare the land

to replace the seed or plants of the

damaged or destroyed insured crop and

then replacing the seed or plants of the

same crop in the insured acreage with

the expectation of producing at least the

yield used to determine the Final

Guarantee.

Representative sample. Portions of the

insured crop that must remain in the

field for examination and review by our

loss adjuster when making a crop

appraisal, as specified in the Crop

Provisions. In certain instances we may

allow you to harvest the crop and

require only that samples of the crop

residue be left in the field.

Sales closing date. A date contained

in the Special Provisions by which an

application must be filed. The last date

by which you may change your crop

insurance coverage for a crop year.

Section (for the purposes of unit

structure). A unit of measure under a

rectangular survey system describing a

tract of land usually one mile square

and usually containing approximately

640 acres.

Share. Your percentage of interest in

the insured crop as an owner, operator,

or tenant at the time insurance attaches.

However, only for the purpose of

determining the amount of indemnity,

your share will not exceed your share at

the earlier of the time of loss, or the

beginning of harvest.

Special Provisions. The part of the

policy that contains specific provisions

of insurance for each insured crop that

may vary by geographic area.

State. The state shown on your

accepted application.

Substantial benefit interest. An

interest held by any person of at least 10

percent in the applicant or insured.

Summary of coverage. Our statement

to you, based upon your acreage report,

specifying the insured crop and the

Revenue Guarantee provided by unit.

Tenant. A person who rents land from

another person for a share of the crop

or a share of the proceeds of the crop

(see the definition of ‘‘share’’ above.)

Termination date. The calendar date

contained in the Crop Provisions upon

which your insurance ceases to be in

effect because of nonpayment of any

amount due us under the policy,

including premium.

Timely planted. Planted on or before

the final planting date designated in the

Special Provisions for the insured crop

in the county.

Unit.

(a) Basic unit—A unit established in

accordance with section 2(a).

(b) Optional unit—A unit established

from basic units in accordance with

section 2(b).

(c) Enterprise unit—A unit

established from basic units or optional

units in accordance with section 2(c).

USDA. United States Department of

Agriculture.

Void. When the policy is considered

not to have existed for a crop year as a

result of concealment, fraud, or

misrepresentation (see section 27).

2. Unit Structure

(a) Basic unit—All insurable acreage

of the insured crop in the county on the

date coverage begins for the crop year:

(1) In which you have 100 percent

crop share; or

(2) Which is owned by one person

and operated by another person on a

share basis. (Example: If, in addition to

the land you own, you rent land from

five landlords, three on a crop share

basis and two on a cash basis, you

would be entitled to four units; one for

each crop share lease and one that

combines the two cash leases and the

land you own.) Land rented for cash, a

fixed commodity payment, or a

consideration other than a share in the

insured crop, or proceeds from the sale

of the insured crop, on such land will

be considered as owned by the lessee

(see definition of ‘‘share’’ above).

(b) Optional unit—Unless limited by

the Crop Provisions or Special

Provisions, a basic unit as defined in

section 2(a) may be divided into

optional units if, for each optional unit:

(1) You meet the following:

(A) You have records, that are

acceptable to us, of planted acreage and

the production from each optional unit

for at least the last crop year used to

determine your Final Guarantee;

(B) You must plant the crop in a

manner that results in a clear and

discernable break in the planting pattern

at the boundaries of each optional unit;

(C) All optional units you select for

the crop year are identified on the

acreage report for that crop year (Units

will be determined when the acreage is

reported but may be adjusted or

combined to reflect the actual unit

structure when adjusting a loss. No

further unit division may be made after

the acreage reporting date for any

reason); and

(D) You have records of marketed or

stored production from each optional

unit maintained in such a manner that

permits us to verify the production from

each optional unit, or the production

from each optional unit is kept separate

until loss adjustment is completed by

us.

(2) Each optional unit must meet one

or more of the following, unless

otherwise specified in the Crop

Provisions:

(A) Optional units may be established

if each optional unit is located in a

separate section. In the absence of

sections, we may consider parcels of

land legally identified by other methods

of measure such as Spanish grants, as

the equivalents of sections for unit

purposes. In areas which have not been

surveyed using sections, section

equivalents or in areas where

boundaries are not readily discernible,

each optional unit must be located in a

separate FSA farm serial number; and

(B) In addition to, or instead of,

establishing optional units by section,

section equivalent or FSA farm serial

number, optional units may be based on

irrigated and non-irrigated acreage. To

qualify as separate irrigated and nonirrigated optional units, the nonirrigated acreage may not continue into

the irrigated acreage in the same rows or

planting pattern. The irrigated acreage

may not extend beyond the point at

which the irrigation system can deliver

the quantity of water needed to produce

the yield on which the Final Guarantee

is based, except the corners of a field in

which a center-pivot irrigation system is

used may be considered as irrigated

acreage if the corners of a field in which

a center-pivot irrigation system is used

do not qualify as a separate nonirrigated optional unit. In this case,

production from both practices will be

used to determine your approved yield.

(3) If you do not comply fully with the

provisions in this section, we will

combine all optional units that are not

in compliance with these provisions
Federal Register / Vol. 63, No. 134 /Tuesday, July 14, 1998 / Notices 37833

into the basic unit from which they

were formed. We will combine the

optional units at any time we discover

that you have failed to comply with

these provisions. If failure to comply

with these provisions is determined by

us to be inadvertent, and the optional

units are combined into a basic unit,

that portion of the additional premium

paid for the optional units that have

been combined will be refunded to you

for the units combined.

(c) Enterprise unit—A unit that

consists of all insurable acreage of the

insured crop in the county in which you

have a share on the date coverage begins

for the crop year. The following

requirements must be met to qualify for

an enterprise unit:

(1) The enterprise unit must contain

50 or more acres;

(2) The acreage that comprises the

enterprise unit must also qualify:

(i) For two or more basic units of the

same insured crop as defined in section

2.(a) that are located in two or more

separate sections, section equivalents or

FSA farm serial numbers; or

(ii) For two or more optional units of

the same insured crop established by

separate sections, section equivalents, or

FSA farm serial numbers as defined in

section 2.(b)(2)(A).

(3) The qualifying basic units or

optional units that comprise the

enterprise unit must each have

insurable acreage of the same crop in

the crop year insured;

(4) You must comply with all

reporting requirements and regulations

for the qualifying basic units or optional

units comprising the enterprise unit;

(5) The qualifying basic units or

optional units may not be combined

into an enterprise unit on any basis

other than as described under this

section; and

(6) If you do not comply fully with

these provisions, and if at any time we

discover that you have failed to comply

with these provisions, we will assign

you the basic unit structure and adjust

the premium accordingly.

If you select and qualify for an

enterprise unit, you will qualify for a

premium discount based on the insured

crop and number of acres in the

enterprise unit.

(d) Selection of unit structure—Basic,

optional, or enterprise units will be

determined when the acreage is

reported but may be adjusted,

combined, or separated to reflect the

actual unit structure when adjusting a

loss. If you select an enterprise unit

structure, you must elect that option in

writing by the sales closing date. If you

do not qualify for an enterprise unit

when the acreage is reported, you will

be assigned a basic unit structure.

All applicable unit structures must be

stated on the acreage report for each

crop year.

3. Life of Policy, Cancellation, and

Termination

(a) This is a continuous policy and

will remain in effect for each crop year

following the acceptance of the original

application until canceled by you in

accordance with the terms of the policy

or terminated by operation of the terms

of the policy, or by us.

(b) Your application for insurance

must contain all the information

required by us to insure the crop.

Applications that do not contain all

social security numbers and employer

identification numbers, as applicable,

(except as stated herein) coverage level,

price percentage, crop, type, variety, or

class, plan of insurance, and any other

material information required to insure

the crop, are not acceptable. If a person

with a substantial beneficial interest in

the insured crop refuses to provide a

social security number or employer

identification number and that person

is:

(1) Not on the non-standard

classification system list, the amount of

coverage available under the policy will

be reduced proportionately by that

person’s share of the crop; or

(2) On the non-standard classification

system list, the insurance will not be

available to that person and any entity

in which the person has a substantial

beneficial interest.

(c) After acceptance of the

application, you may not cancel this

policy for the initial crop year.

Thereafter, the policy will continue in

force for each succeeding crop year

unless canceled or terminated as

provided below.

(d) Either you or we may cancel this

policy after the initial crop year by

providing written notice to the other on

or before the cancellation date shown in

the Crop Provisions.

(e) If any amount due, including

premium, is not paid on or before the

termination date for the crop on which

an amount is due:

(1) For a policy with the unpaid

premium, the policy will terminate

effective on the termination date

immediately subsequent to the billing

date for the crop year;

(2) For a policy with other amounts

due, the policy will terminate effective

on the termination date immediately

after the account becomes delinquent;

(3) Ineligibility will be effective as of

the date that the policy was terminated

for the crop for which you failed to pay

an amount owed and for all other

insured crops with coincidental

termination dates;

(4) All other policies that are issued

by us under the authority of the Act will

also terminate as of the next termination

date contained in the applicable policy;

(5) If you are ineligible, you may not

obtain any crop insurance under the Act

until payment is made, you execute an

agreement to repay the debt and make

the payments in accordance with the

agreement, or you file a petition to have

your debts discharged in bankruptcy;

(6) If you execute an agreement to

repay the debt and fail to timely make

any scheduled payment, you will be

ineligible for crop insurance effective on

the date the payment was due until the

debt is paid in full or you file a petition

to discharge the debt in bankruptcy and

subsequently obtain discharge of the

amounts due. Dismissal of the

bankruptcy petition before discharge

will void all policies in effect retroactive

to the date you were originally

determined ineligible to participate;

(7) Once the policy is terminated, the

policy cannot be reinstated for the

current crop year unless the termination

was in error;

(8) After you again become eligible for

crop insurance, if you want to obtain

coverage for your crops, you must

reapply on or before the sales closing

date for the crop (Since applications for

crop insurance cannot be accepted after

the sales closing date, if you make any

payment after the sales closing date, you

cannot apply for insurance until the

next crop year); and

(9) If we deduct the amount due us

from an indemnity, the date of payment

for the purpose of this section will be

the date you sign the properly executed

claim for indemnity.

(10) For example, if crop A, with a

termination date of October 31, 1997,

and crop B, with a termination date of

March 15, 1998, are insured and you do

not pay the premium for crop A by the

termination date, you are ineligible for

crop insurance as of October 31, 1997,

and crop A’s policy is terminated on

that date. Crop B’s policy is terminated

as of March 15, 1998. If you enter an

agreement to repay the debt on April 25,

1998, you can apply for insurance for

crop A by the October 31, 1998, sales

closing date and crop B by the March

15, 1999, sales closing date. If you fail

to make a scheduled payment on

November 1, 1998, you will be ineligible

for crop insurance effective on

November 1, 1998, and you will not be

eligible unless the debt is paid in full or

you file a petition to have the debt

discharged in bankruptcy and

subsequently receive discharge.
37834 Federal Register / Vol. 63, No. 134 /Tuesday, July 14, 1998 / Notices

(f) If you die, disappear, or are

judicially declared incompetent, or if

you are an entity other than an

individual and such entity is dissolved,

the policy will terminate as of the date

of death, judicial declaration, or

dissolution. If such event occurs after

coverage begins for any crop year, the

policy will continue in force through

the crop year and terminate at the end

of the insurance period and any

indemnity will be paid to the person or

persons determined to be beneficially

entitled to the indemnity. The premium

will be deducted from the indemnity or

collected from the estate. Death of a

partner in a partnership will dissolve

the partnership unless the partnership

agreement provides otherwise. If two or

more persons having a joint interest are

insured jointly, death of one of the

persons will dissolve the joint entity.

(g) We may terminate your policy if

no premium is earned for 3 consecutive

years.

(h) The cancellation and termination

dates are contained in the Crop

Provisions.

(i) You are not eligible to participate

in the Crop Revenue Coverage program

if you have elected the MPCI

Catastrophic Risk Protection

Endorsement except that if you execute

a High Risk Land Exclusion Option for

a Crop Revenue Coverage Policy, you

may elect to insure the ‘‘high risk land’’

under an MPCI Catastrophic Risk

Protection Endorsement. If both policies

are in force, the acreage of the crop

covered under the Crop Revenue

Coverage policy and the acreage covered

under an MPCI Catastrophic Risk

Protection Endorsement will be

considered as separate crops for

insurance purposes, including the

payment of administrative fees.

4. Coverage Level, Price Percentage, and

Approved Yield For Determining Final

Guarantee and Indemnity

(a) For each crop year, the Final

Guarantee, coverage level, and price

percentage at which an indemnity will

be determined for each unit will be

those used to calculate your summary of

coverage. The information necessary to

determine those factors will be

contained in the Special Provisions or

in the actuarial documents.

(b) You may select only one coverage

level from among those offered by us for

each insured crop. By written notice to

us, you may change the coverage level

for the following crop year not later than

the sales closing date for the affected

insured crop. If you do not change the

coverage level for the succeeding crop

year you will be assigned the same

coverage level that was in effect the

previous crop year.

(c) You may select only one price

percentage for each insured crop. You

may change the price percentage for the

following crop year by giving written

notice to us not later than the sales

closing date for the insured crop. The

price percentage you select applies to

both the Base Price and Harvest Price.

Since the average daily settlement price

may change each year, if you do not

select a new price percentage on or

before the sales closing date, we will

assign a price percentage which bears

the same relationship to the price

percentage schedule that was in effect

for the preceding year. (For example: If

you selected a price percentage of 100

for the previous crop year, and you do

not select a new price percentage for the

current crop year, we will assign a price

percentage of 100 for the current crop

year.)

(d) This policy is an alternative to the

Multiple Peril Crop Insurance program

and satisfies the requirements of section

508(b)(7) of the Act.

(e) You must report production to us

for the previous crop year by the earlier

of the acreage reporting date or 45 days

after the cancellation date unless

otherwise stated in the Special

Provisions.

(1) If you do not provide the required

production report, we will assign a yield

for the previous crop year. The yield

assigned by us will not be more than 75

percent of the yield used by us to

determine your coverage for the

previous crop year. The production

report or assigned yield will be used to

compute your Approved Yield for the

purpose of determining your Final

Guarantee for the current crop year.

(2) If you have filed a claim for any

crop year, the documents signed by you

which state the amount of production

used to complete the claim for

indemnity will be the production report

for that year unless otherwise specified

by FCIC.

(3) Production and acreage for the

prior crop year must be reported for

each proposed optional unit by the

production reporting date. If you do not

provide the information stated above,

the optional units will be combined into

the basic unit.

(f) We may revise your Final

Guarantee for any unit, and revise any

indemnity paid based on that Final

Guarantee, if we find that your

production report under paragraph (e) of

this section:

(1) Is not supported by written

verifiable records in accordance with

the definition of production report; or

(2) Fails to accurately report actual

production, acreage, or other material

information.

5. Contract Changes

(a) We may change the terms of your

coverage under this policy from year to

year.

(b) Any changes in policy provisions,

premium rates, and program dates will

be provided by us to your crop

insurance agent not later than the

contract change date contained in the

Crop Provisions. You may view the

documents or request copies from your

crop insurance agent.

(c) You will be notified, in writing, of

changes to the Basic Provisions, Crop

Provisions, and Special Provisions not

later than 30 days prior to the

cancellation date for the insured crop.

Acceptance of changes will be

conclusively presumed in the absence of

notice from you to change or cancel

your insurance coverage.

6. Liberalization

If we adopt any revisions that

broadens the coverage under this policy

subsequent to the contract change date

without additional premium, the

broadened coverage will apply.

7. Report of Acreage

(a) An annual acreage report must be

submitted to us on our form for each

insured crop in the county on or before

the acreage reporting date contained in

the Special Provisions, except as

follows:

(1) If you insure multiple crops that

have final planting dates on or after

August 15 but before December 31, you

must submit an acreage report for all

such crops on or before the latest

applicable acreage reporting date for

such crops; and

(2) If you insure multiple crops that

have final planting dates on or after

December 31 but before August 15, you

must submit an acreage report for all

such crops on or before the latest

applicable acreage reporting date for

such crops.

(3) Notwithstanding the provisions in

sections 7(a)(1) and (2):

(i) If the Special Provisions designate

separate planting periods for a crop, you

must submit an acreage report for each

planting period on or before the acreage

reporting date contained in the Special

Provisions for the planting period; and

(ii) If planting of the insured crop

continues after the final planting date or

you are prevented from planting during

the late planting period, the acreage

reporting date will be the later of:

(A) The acreage reporting date

contained in the Special Provisions;
Federal Register / Vol. 63, No. 134 /Tuesday, July 14, 1998 / Notices 37835

(B) The date determined in

accordance with sections 7(a)(1) or (2);

or

(C) Five (5) days after the end of the

late planting period for the insured

crop, if applicable.

(b) If you do not have a share in an

insured crop in the county for the crop

year, you must submit an acreage report

on or before the acreage reporting date,

so indicating.

(c) Your acreage report must include

the following information, if applicable:

(1) All acreage of the crop in the

county (insurable and not insurable) in

which you have a share;

(2) Your share at the time coverage

begins;

(3) The practice;

(4) The type; and

(5) The date the insured crop was

planted.

(d) Because incorrect reporting on the

acreage report may have the effect of

changing your premium and any

indemnity that may be due, you may not

revise this report after the acreage

reporting date without our consent.

(e) We may elect to determine all

premiums and indemnities based on the

information you submit on the acreage

report or upon the factual circumstances

we determine to have existed.

(f) If you do not submit an acreage

report by the acreage reporting date, or

if you fail to report all units, we may

elect to determine by unit the insurable

crop acreage, share, type and practice,

or to deny liability on such units. If we

deny liability for the unreported units,

your share of any production from the

unreported units will be allocated, for

loss purposes only, as production to

count to the reported units in

proportion to the liability on each

reported unit.

(g) If the information reported by you

on the acreage report for share, acreage,

practice, type or other material

information is inconsistent with the

information that is determined to

actually exist for a unit and results in:

(1) A lower liability than the actual

liability determined, the Final

Guarantee on the unit will be reduced

to an amount that is consistent with the

reported information. In the event that

insurable acreage is under-reported for

any unit, all production or value from

insurable acreage in that unit will be

considered production or value to count

in determining the indemnity; and

(2) A higher liability than the actual

liability determined, the information

contained in the acreage report will be

revised to be consistent with the correct

information. If we discover that you

have incorrectly reported any

information on the acreage report for

any crop year, you may be required to

provide documentation in subsequent

crop years that substantiates your report

of acreage for those crop years,

including, but not limited to, an acreage

measurement service at your own

expense.

(h) Errors in reporting units may be

corrected by us at the time of adjusting

a loss to reduce our liability and to

conform to applicable unit division

guidelines.

8. Annual Premium

(a) The annual premium is earned and

payable at the time coverage begins. You

will be billed for premium due not

earlier than the premium billing date

specified in the Special Provisions. The

premium due, plus any accrued interest,

will be considered delinquent if it is not

paid on or before the termination date

specified in the Crop Provisions.

(b) Any amount you owe us related to

any crop insured with us under the

authority of the Act will be deducted

from any prevented planting payment or

indemnity due you for any crop insured

with us under the authority of the Act.

(c) The annual premium amount is

determined by:

(1) Multiplying the Approved Yield

times the coverage level, times the MPCI

Base Rate specified in the applicable

MPCI actuarial documents, and times

the Base Price, as defined in the

Commodity Exchange Endorsement.

(2) Multiplying the Approved Yield

times the coverage level, times the CRC

Rate specified in the actuarial

documents, and times the Low Price

Factor specified in the actuarial

documents;

(3) Multiplying the Approved Yield

times the coverage level, times the MPCI

Base Rate specified in the applicable

MPCI actuarial documents, and times

the High Price Factor specified in the

actuarial documents;

(4) Adding sections 8(c) (1), (2), and

(3);

(5) Multiplying the result of section

8(c)(4) times the acres insured, times

your share at the time coverage begins,

and as applicable, times any Rate Map

Area Adjustment Factor; Rate Class

Option Factor; Option Factor; and

Catastrophic Yield Adjustment

Surcharge specified in the actuarial

documents;

(6) Multiplying the Approved Yield

times the coverage level, times the MPCI

Base Rate specified in the applicable

actuarial documents, times the MPCI

Market Price Election, times the acres

insured, times your share at the time

coverage begins, and as applicable,

times any Rate Map Area Adjustment

Factor; Rate Class Option Factor; Option

Factor; and Catastrophic Yield

Adjustment Surcharge specified in the

actuarial documents, and times the

applicable producer subsidy percentage

to calculate the appropriate amount of

subsidy. The producer subsidy

percentage is based upon the coverage

level and is contained in the actuarial

documents; and

(7) Subtracting section 8(c)(6) from

section 8(c)(5) to determine the annual

producer paid premium.

(d) The annual premium amount for

any applicable High Risk Classification

is determined by:

(1) Multiplying the Approved Yield

(with yield adjustments specified in the

actuarial documents) times the coverage

level, times the High Risk Classification

Rate specified in the actuarial

documents, times the Rate Differential

specified in the actuarial documents,

and times the Base Price as defined in

the Commodity Exchange Endorsement;

(2) Multiplying the result of section

8(d)(1) times the acres insured, times

your share at the time coverage begins,

times any applicable Rate Class Option

Factor; and Option Factor specified in

the actuarial documents, and times the

High Risk Classification Premium Factor

calculated using the High Risk

Classification Premium Formula

specified in the actuarial documents;

(3) Multiplying the Approved Yield

(with yield adjustments specified in the

actuarial documents) times the coverage

level, times the High Risk Classification

Rate specified in the actuarial

documents, times the Rate Differential

specified in the actuarial documents,

times the MPCI Market Price Election,

times the acres insured, times your

share at the time coverage begins, and

as applicable, times any Rate Class

Option Factor; and Option Factor

specified in the actuarial documents,

and times the applicable producer

subsidy percentage to calculate the

appropriate amount of subsidy. The

producer subsidy percentage is based

upon the coverage level and is

contained in the actuarial documents;

and

(4) Subtracting section 8(d)(3) from

section 8(d)(2) to determine the annual

producer paid premium.

9. Insured Crop

(a) The insured crop will be that

shown on your accepted application

and as specified in the Crop Provisions

or Special Provisions and must be

grown on insurable acreage.

(b) A crop which will NOT be insured

will include, but will not be limited to,

any crop:

(1) If the farming practices carried out

are not in accordance with the farming

practices for which the premium rates
37836 Federal Register / Vol. 63, No. 134 /Tuesday, July 14, 1998 / Notices

or Final Guarantee have been

established;

(2) Of a type, class or variety

established as not adapted to the area or

excluded by the policy provisions;

(3) That is a volunteer crop;

(4) That is a second crop following the

same crop (insured or not insured)

harvested in the same crop year unless

specifically permitted by the Crop

Provisions or the Special Provisions;

(5) That is planted for the

development or production of hybrid

seed or for experimental purposes,

unless permitted by the Crop Provisions

or unless we agree, in writing, to insure

such crop; or

(6) That is used solely for wildlife

protection or management. If the lease

states that specific acreage must remain

unharvested, only that acreage is

uninsurable. If the lease specifies that a

percentage of the crop must be left

unharvested, your share will be reduced

by such percentage.

10. Insurable Acreage

(a) Acreage planted to the insured

crop in which you have a share is

insurable except acreage:

(1) That has not been planted and

harvested within one of the 3 previous

crop years, unless:

(i) Such acreage was not planted:

(A) To comply with any other USDA

program;

(B) Because of crop rotation, (e.g.,

corn, soybean, alfalfa; and the alfalfa

remained for 4 years before the acreage

was planted to corn again);

(C) Due to an insurable cause of loss

that prevented planting; or

(D) Because a perennial crop was

grown on the acreage.

(ii) Such acreage was planted but was

not harvested due to an insurable cause

of loss; or

(iii) The Crop Provisions specifically

allow insurance for such acreage.

(2) That has been strip-mined, unless

an agricultural commodity other than a

cover, hay, or forage crop (except corn

silage), has been harvested from the

acreage for at least five crop years after

the strip-mined land was reclaimed;

(3) On which the insured crop is

damaged and it is practical to replant

the insured crop, but the insured crop

is not replanted;

(4) That is interplanted, unless

allowed by the Crop Provisions;

(5) That is otherwise restricted by the

Crop Provisions or Special Provisions;

or

(6) That is planted in any manner

other than as specified in the policy

provisions for the crop.

(b) If insurance is provided for an

irrigated practice, you must report as

irrigated only that acreage for which you

have adequate facilities and adequate

water, or the reasonable expectation of

receiving adequate water at the time

coverage begins, to carry out a good

irrigation practice. If you knew or had

reason to know that your water may be

reduced before coverage begins, no

reasonable expectation exists.

(c) Notwithstanding the provisions in

section 9(b)(1), if acreage is irrigated and

we do not provide a premium rate for

an irrigated practice, you may either

report and insure the irrigated acreage

as ‘‘non-irrigated,’’ or report the

irrigated acreage as not insured.

(d) We may restrict the amount of

acreage that we will insure to the

amount allowed under any acreage

limitation program established by the

United States Department of Agriculture

if we notify you of that restriction prior

to the sales closing date.

11. Share Insured

(a) Insurance will attach only to the

share of the person completing the

application and will not extend to any

other person having a share in the crop

unless the application clearly states

that:

(1) The insurance is requested for an

entity such as a partnership or a joint

venture; or

(2) You as landlord will insure your

tenant’s share, or you as tenant will

insure your landlord’s share. In this

event, you must provide evidence of the

other party’s approval (lease, power of

attorney, etc.). Such evidence will be

retained by us. You also must clearly set

forth the percentage shares of each

person on the acreage report.

(b) We may consider any acreage or

interest reported by or for your spouse,

child or any member of your household

to be included in your share.

(c) Acreage rented for a percentage of

the crop, or a lease containing

provisions for Both a minimum

payment (such as a specified amount of

cash, bushels, pounds, etc.,) And a crop

share will be considered a crop share

lease.

(d) Acreage rented for cash, or a lease

containing provisions for Either a

minimum payment Or a crop share

(such as a 50/50 share or $100.00 per

acre, whichever is greater) will be

considered a cash lease.

12. Insurance Period

(a) Except for prevented planting

coverage (see section 18), coverage

begins on each unit or part of a unit at

the later of:

(1) The date we accept your

application (For the purposes of this

paragraph, the date of acceptance is the

date that you submit a properly

executed application in accordance with

section 3);

(2) The date the insured crop is

planted; or

(3) The calendar date contained in the

Crop Provisions for the beginning of the

insurance period.

(b) Coverage ends at the earliest of:

(1) Total destruction of the insured

crop on the unit;

(2) Harvest of the unit;

(3) Final adjustment of a loss on a

unit;

(4) The calendar date contained in the

Crop Provisions for the end of the

insurance period;

(5) Abandonment of the crop on the

unit; or

(6) As otherwise specified in the Crop

Provisions.

13. Causes of Loss

The insurance provided is against

only unavoidable loss of revenue

directly caused by specific causes of

loss contained in the Crop Provisions.

All other causes of loss, including but

not limited to the following, are Not

covered:

(a) Negligence, mismanagement, or

wrongdoing by you, any member of your

family or household, your tenants, or

employees;

(b) Failure to follow recognized good

farming practices for the insured crop;

(c) Water contained by any

governmental, public, or private dam or

reservoir project;

(d) Failure or breakdown of irrigation

equipment or facilities; or

(e) Failure to carry out a good

irrigation practice for the insured crop,

if applicable.

14. Replanting Payment

(a) If allowed by the Crop Provisions,

a replanting payment may be made on

an insured crop replanted after we have

given consent and the acreage replanted

is at least the lesser of 20 acres or 20

percent of the insured planted acreage

for the unit (as determined on the final

planting date or within the late planting

period if a late planting period is

applicable.)

(b) No replanting payment will be

made on acreage:

(1) On which our appraisal establishes

that production will exceed the level set

by the Crop Provisions;

(2) Initially planted prior to the

earliest planting date established by the

Special Provisions; or

(3) On which one replanting payment

has already been allowed for the crop

year.

(c) The replanting payment per acre

will be your actual cost for replanting,

but will not exceed the amount
Federal Register / Vol. 63, No. 134 /Tuesday, July 14, 1998 / Notices 37837

determined in accordance with the Crop

Provisions.

(d) No replanting payment will be

paid if we determine it is not practical

to replant.

15. Duties in the Event of Damage or

Loss.

Your Duties—

(a) In case of damage to any insured

crop you must:

(1) Protect the crop from further

damage by providing sufficient care;

(2) Give us notice within 72 hours of

your initial discovery of damage (but

not later than 15 days after the end of

the insurance period), by unit, for each

insured crop (we may accept a notice of

loss provided later than 72 hours after

your initial discovery if we still have the

ability to accurately adjust the loss);

(3) Leave representative samples

intact for each field of the damaged unit

as may be required by the Crop

Provisions; and

(4) Cooperate with us in the

investigation or settlement of the claim,

and, as often as we reasonably require:

(i) Show us the damaged crop;

(ii) Allow us to remove samples of the

insured crop; and

(iii) Provide us with records and

documents we request and permit us to

make copies.

(b) You must obtain consent from us

before, and notify us after you:

(1) Destroy any of the insured crop

that is not harvested;

(2) Put the insured crop to an

alternative use;

(3) Put the acreage to another use; or

(4) Abandon any portion of the

insured crop. We will not give consent

for any of the actions in sections

15(b)(1) through (4) if it is practical to

replant the crop or until we have made

an appraisal of the potential production

of the crop.

(c) In addition to complying with all

other notice requirements, you must

submit a claim for indemnity declaring

the amount of your loss not later than

60 days after the end of the insurance

period. This claim must include all the

information we require to settle the

claim.

(d) Upon our request, you must:

(1) Provide a complete harvesting and

marketing record of each insured crop

by unit including separate records

showing the same information for

production from any acreage not

insured; and

(2) Submit to examination under oath.

(e) You must establish the total

production or value received for the

insured crop on the unit, that any loss

of production or value occurred during

the insurance period, and that the loss

of production or value was directly

caused by one or more of the insured

causes specified in the Crop Provisions.

(f) All notices required in this section

that must be received by us within 72

hours may be made by telephone or in

person to your crop insurance agent but

must be confirmed in writing within 15

days.

Our Duties—

(a) If you have complied with all the

policy provisions, we will pay your loss

within 30 days after:

(1) We reach agreement with you;

(2) Completion of arbitration or

appeal proceedings; or

(3) The entry of a final judgment by

a court of competent jurisdiction.

(b) In the event we are unable to pay

your loss within 30 days, we will give

you notice of our intentions within the

30-day period.

(c) We may defer the adjustment of a

loss until the amount of loss can be

accurately determined. We will not pay

for additional damage resulting from

your failure to provide sufficient care

for the crop during the deferral period.

(d) We recognize and apply the loss

adjustment procedures established or

approved by FCIC.

16. Production Included in Determining

Indemnities

(a) The total production to be counted

for a unit will include all production

determined in accordance with the

policy.

(b) The amount of production of any

unharvested insured crop may be

determined on the basis of our field

appraisals conducted after the end of

the insurance period.

17. Late Planting

Unless limited by the Crop

Provisions, insurance will be provided

for acreage planted to the insured crop

after the final planting date in

accordance with the following:

(a) The Final Guarantee for each acre

planted to the insured crop during the

late planting period will be reduced by

1 percent per day for each day planted

after the final planting date.

(b) Acreage planted after the late

planting period (or after the final

planting date for crops that do not have

a late planting period) may be insured

as follows:

(1) The Final Guarantee for each acre

planted as specified in this subsection

will be determined by multiplying the

Final Guarantee that is provided for

acreage of the insured crop that is

timely planted by the prevented

planting coverage level percentage you

elected, or that is contained in the Crop

Provisions if you did not elect a

prevented planting coverage level

percentage;

(2) Planting on such acreage must

have been prevented by the final

planting date (or during the late

planting period, if applicable) by an

insurable cause occurring within the

insurance period for prevented planting

coverage;

(3) The Final Guarantee for any

acreage on which an insured cause of

loss prevents completion of planting, as

specified in the definition of ‘‘planted

acreage’’ (e.g., seed is broadcast on the

soil surface but cannot be incorporated),

will be determined as indicated in this

section; and

(4) All production from acreage as

specified in this section will be

included as production to count for the

unit.

(c) The premium amount for insurable

acreage specified in section 17(a) or (b)

will be the same as that for timely

planted acreage. If the amount of

premium you are required to pay (gross

premium less our subsidy) for such

acreage exceeds the liability, coverage

for those acres will not be provided (no

premium will be due and no indemnity

will be paid).

18. Prevented Planting

(a) Unless limited by the policy

provisions, a prevented planting

payment may be made to you for

eligible acreage if:

(1) You were prevented from planting

the insured crop by an insured cause

that occurs:

(i) On or after the sales closing date

contained in the Special Provisions for

the insured crop in the county for the

crop year the application for insurance

is accepted; or

(ii) For any subsequent crop year, on

or after the sales closing date for the

previous crop year for the insured crop

in the county, provided insurance has

been in force continuously since that

date. Cancellation for the purpose of

transferring the policy to a different

insurance provider for the subsequent

crop year will not be considered a break

in continuity for the purpose of the

preceding sentence; and

(2) You include any acreage of the

insured crop that was prevented from

being planted on your acreage report.

(b) The actuarial documents may

contain additional levels of prevented

planting coverage that you may

purchase for the insured crop:

(1) Such purchase must be made on

or before the sales closing date.

(2) If you do not purchase one of those

additional levels by the sales closing

date, you will receive the prevented
37838 Federal Register / Vol. 63, No. 134 /Tuesday, July 14, 1998 / Notices

planting coverage specified in the Crop

Provisions.

(3) If you have an MPCI Catastrophic

Risk Protection Endorsement for any

acreage of ‘‘high risk land,’’ the

additional levels of prevented planting

coverage will not be available for that

acreage; and

(4) You may not increase your elected

or assigned preventing planting

coverage level for any crop year if a

cause of loss that will or could prevent

planting is evident prior to the time you

wish to change your prevented planting

coverage level.

(c) The premium amount for acreage

that is prevented from being planted

will be the same as that for timely

planted acreage. If the amount of

premium you are required to pay (gross

premium less our subsidy) for acreage

that is prevented from being planted

exceeds the liability on such acreage,

coverage for those acres will not be

provided (no premium will be due and

no indemnity will be paid for such

acreage).

(d) Drought or failure of the irrigation

water supply will not be considered to

be an insurable cause of loss for the

purposes of prevented planting unless,

on the final planting date:

(1) For non-irrigated acreage, the area

that is prevented from being planted is

classified by the Palmer Drought

Severity Index as being in a severe or

extreme drought; or

(2) For irrigated acreage, there is not

a reasonable probability of having

adequate water to carry out an irrigated

practice.

(e) The maximum number of acres

that may be eligible for a prevented

planting payment for any crop will be

determined as follows:

(1) The total number of acres eligible

for prevented planting coverage for all

crops cannot exceed the number of acres

of cropland in your farming operation

for the crop year, unless you are eligible

for prevented planting coverage on

double cropped acreage in accordance

with section 18(f)(4) or (5). The eligible

acres for each insured crop will be

determined in accordance with the

following table.

Type of crop

Eligible acres if, in any of the 4 most recent crop years,

you have produced any crop for which insurance was

available

Eligible acres if, in any of the 4 most recent crop years,

you have not produced any crop for which insurance

was available

(i) The crop is not required

to be contracted with a

processor to be insured.

(A) The maximum number of acres certified for APH

purposes or reported for insurance for the crop in

any one of the 4 most recent crop years (not including reported prevented planting acreage that was

planted to a substitute crop other than an approved

cover crop). The number of acres determined above

for a crop may be increased by multiplying it by the

ratio of the total cropland acres that you are farming

this year (if greater) to the total cropland acres that

you farmed in the previous year, provided that you

submit proof to us that for the current crop year you

have purchased or leased additional land or that

acreage will be released from any USDA program

which prohibits harvest of a crop. Such acreage must

have been purchased, leased, or released from the

USDA program, in time to plant it for the current crop

year using good farming practices. No cause of loss

that will or could prevent planting may be evident at

the time the acreage is purchased, leased, or released from the USDA program.

(B) The number of acres specified on your intended

acreage report which is submitted to us by the sales

closing date for all crops you insure for the crop year

and that is accepted by us. The total number of

acres listed may not exceed the number of acres of

cropland in your farming operation at the time you

submit the intended acreage report. The number of

acres determined above for a crop may only be increased by multiplying it by the ratio of the total cropland acres that you are farming this year (if greater)

to the number of acres listed on your intended acreage report, if you meet the conditions stated in section 18(e)(1)(i)(A).

(ii) The crop must be contracted with a processor to

be insured.

(A) The number of acres of the crop specified in the

processor contract, if the contract specifies a number

of acres contracted for the crop year; or the result of

dividing the quantity of production stated in the processor contract by your approved yield, if the processor contract specifies a quantity of production that

will be accepted. (For the purposes of establishing

the number of prevented planting acres, any reductions applied to the transitional yield for failure to certify acreage and production for four prior years will

not be used.).

(B) The number of acres of the crop as determined in

section 18(e)(1)(ii)(A).

(2) Any eligible acreage determined in

accordance with the table contained in

section 18(e)(1) will be reduced by

subtracting the number of acres of the

crop (insured and uninsured) that are

timely and late planted, including

acreage specified in section 17(b).

(f) Regardless of the number of

eligible acres determined in section

18(e), prevented planting coverage will

not be provided for any acreage:

(1) If at least one contiguous block of

prevented planting acreage does not

constitute at least 20 acres or 20 percent

of the insurable crop acreage in the unit,

whichever is less. We will assume that

any prevented planting acreage within a

field that contains planted acreage

would have been planted to the same

crop that is planted in the field, unless

the prevented planting acreage

constitutes at least 20 acres or 20

percent of the insurable acreage in the

field and you can prove that you have

previously produced both crops in the

same field in the same crop year;

(2) Used for conservation purposes or

intended to be left unplanted under any

program administered by the USDA;

(3) For which the actuarial documents

do not designate a premium rate;

(4) On which the insured crop is

prevented from being planted, if you or

any other person receives a prevented

planting payment for any crop for the

same acreage in the same crop year

(excluding share arrangements), unless

you have coverage greater than the

Catastrophic Risk Protection Plan of

Insurance and have records of acreage
Federal Register / Vol. 63, No. 134 /Tuesday, July 14, 1998 / Notices 37839

and production that are used to

determine your approved yield that

show the acreage was double-cropped in

each of the last 4 years in which the

insured crop was grown on the acreage;

(5) On which the insured crop is

prevented from being planted, if any

crop from which any benefit is derived

under any program administered by the

USDA is planted and fails, or if any crop

is harvested, hayed or grazed on the

same acreage in the same crop year

(other than a cover crop which may be

hayed or grazed after the final planting

date for the insured crop), unless you

have coverage greater than that

applicable to the Catastrophic Risk

Protection Plan of Insurance and have

records of acreage and production that

are used to determine your approved

yield that show the acreage was doublecropped in each of the last 4 years in

which the insured crop was grown on

the acreage;

(6) Of a crop that is prevented from

being planted if a cash lease payment is

also received for use of the same acreage

in the same crop year (not applicable if

acreage is leased for haying or grazing

only). If you state that you will not be

cash renting the acreage and claim a

prevented planting payment on the

acreage, you could be subject to civil

and criminal sanctions if you cash rent

the acreage and do not return the

prevented planting payment for it;

(7) For which planting history or

conservation plans indicate that the

acreage would have remained fallow for

crop rotation purposes;

(8) That exceeds the number of acres

eligible for a prevented planting

payment;

(9) That exceeds the number of

eligible acres physically available for

planting;

(10) For which you cannot provide

proof that you had the inputs available

to plant and produce a crop with the

expectation of at least producing the

yield used to determine the Final

Guarantee (Evidence that you have

previously planted the crop on the unit

will be considered adequate proof

unless your planting practices or

rotational requirements show that the

acreage would have remained fallow or

been planted to another crop);

(11) Based on an irrigated practice

Final Guarantee unless adequate

irrigation facilities were in place to

carry out an irrigated practice on the

acreage prior to the insured cause of loss

that prevented you from planting; or

(12) Of a crop type that you did not

plant in at least one of the four most

recent years. Types for which separate

Final Guarantees are available must be

included in your APH database in at

least one of the most recent four years,

or crops that do not require yield

certification (crops for which the

insurance guarantee is not based on

APH) must be reported on your acreage

report in at least one of the four most

recent crop years except as allowed in

section 18(e)(1)(i)(B).

(g) The prevented planting payment

for any eligible acreage within a basic or

optional unit will be determined by:

(1) Multiplying the Final Guarantee

for timely planted acreage of the insured

crop by the prevented planting coverage

level percentage you elected, or that is

contained in the Crop Provisions if you

did not elect a prevented planting

coverage level percentage;

(2) Multiplying the result of section

18(g)(1) by the number of eligible

prevented planting acres in the unit;

and

(3) Multiplying the result of section

18(g)(2) by your share.

(h) The prevented planting payment

for any eligible acreage within an

enterprise unit will be determined by:

(1) Multiplying the Final Guarantee

for each basic unit or optional unit

within the enterprise unit, for timely

planted acreage of the insured crop by

the prevented planting coverage level

percentage you elected, or that is

contained in the Crop Provisions if you

did not elect a prevented planting

coverage level percentage;

(2) Multiplying the result for each

basic or optional unit in section 18(h)(1)

by the number of eligible prevented

planting acres in each basic unit or

optional unit within the enterprise unit;

(3) Multiplying the result of section

18(h)(2) for each basic or optional unit

by your share; and

(4) Total the results from section

18(h)(3).

19. Crops As Payment

You must not abandon any crop to us.

We will not accept any crop as

compensation for payments due us.

20. Arbitration

(a) If you and we fail to agree on any

factual determination, the disagreement

will be resolved in accordance with the

rules of the American Arbitration

Association. Failure to agree with any

factual determination made by FCIC

must be resolved through the FCIC

appeal provisions published at 7 CFR

part 11.

(b) No award determined by

arbitration or appeal can exceed the

amount of liability established or which

should have been established under the

policy.

21. Access to Insured Crop and Records,

and Record Retention

(a) We reserve the right to examine

the insured crop as often as we

reasonably require.

(b) For three years after the end of the

crop year, you must retain, and provide

upon our request, complete records of

the harvesting, storage, shipment, sale,

or other disposition of all the insured

crop produced on each unit. This

requirement also applies to the records

used to establish the basis for the

production report for each unit. You

must also provide upon our request,

separate records showing the same

information for production from any

acreage not insured. We may extend the

record retention period beyond three

years by notifying you of such extension

in writing. Your failure to keep and

maintain such records will, at our

option, result in:

(1) Cancellation of the policy;

(2) Assignment of production to the

units by us;

(3) Combination of the optional units;

or

(4) A determination that no indemnity

is due.

(c) Any person designated by us will,

at any time during the record retention

period, have access:

(1) To any records relating to this

insurance at any location where such

records may be found or maintained;

and

(2) To the farm.

(d) By applying for insurance under

the authority of the Act or by continuing

insurance for which you previously

applied, you authorize us, or any person

acting for us, to obtain records relating

to the insured crop from any person

who may have custody of those records

including, but not limited to, FSA

offices, banks, warehouses, gins,

cooperatives, marketing associations,

and accountants. You must assist us in

obtaining all records which we request

from third parties.

22. Other Insurance

(a) Other Like Insurance—You must

not obtain any other crop insurance

issued under the authority of the Act on

your share of the insured crop. If we

determine that more than one policy on

your share is intentional, you may be

subject to the sanctions authorized

under this policy, the Act, or any other

applicable statute. If we determine that

the violation was not intentional, the

policy with the earliest date of

application will be in force and all other

policies will be void. Nothing in this

paragraph prevents you from obtaining

other insurance not issued under the

Act.
37840 Federal Register / Vol. 63, No. 134 /Tuesday, July 14, 1998 / Notices

(b) Other Insurance Against Fire—If

you have other insurance, whether valid

or not, against damage to the insured

crop by fire during the insurance period,

we will be liable for loss due to fire only

for the smaller of:

(1) The amount of indemnity

determined pursuant to this policy

without regard to such other insurance;

or

(2) The amount by which the loss

from fire is determined to exceed the

indemnity paid or payable under such

other insurance.

(c) For the purpose of subsection (b)

of this section, the amount of loss from

fire will be the reduction in revenue of

the insured crop on the unit involved

determined pursuant to this policy.

23. Conformity to Food Security Act

Although your violation of a number

of federal statutes, including the Act,

may cause cancellation, termination, or

voidance of your insurance contract,

you should be specifically aware that

your policy will be canceled if you are

determined to be ineligible to receive

benefits under the Act due to violation

of the controlled substance provision

(title XVII) of the Food Security Act of

1985 (Pub. L. 99–198) and the

regulations promulgated under the Act

by USDA. Your insurance policy will be

canceled if you are determined, by the

appropriate Agency, to be in violation of

these provisions. We will recover any

and all monies paid to you or received

by you during your period of

ineligibility, and your premium will be

refunded, less a reasonable amount for

expenses and handling not to exceed 20

percent of the premium paid or to be

paid by you.

24. Amounts Due Us

(a) Interest will accrue at the rate of

1.25 percent simple interest per

calendar month, or any portion thereof,

on any unpaid amount due us. For the

purpose of premium amounts due us,

the interest will start to accrue on the

first day of the month following the

premium billing date specified in the

Special Provisions.

(b) For the purpose of any other

amounts due us, such as repayment of

indemnities found not to have been

earned, interest will start to accrue on

the date that notice is issued to you for

the collection of the unearned amount.

Amounts found due under this

paragraph will not be charged interest if

payment is made within 30 days of

issuance of the notice by us. The

amount will be considered delinquent if

not paid within 30 days of the date the

notice is issued by us.

(c) All amounts paid will be applied

first to expenses of collection (see

subsection (d) of this section) if any,

second to the reduction of accrued

interest, and then to the reduction of the

principal balance.

(d) If we determine that it is necessary

to contract with a collection agency or

to employ an attorney to assist in

collection, you agree to pay all of the

expenses of collection.

25. Legal Action Against Us

(a) You may not bring legal action

against us unless you have complied

with all of the policy provisions.

(b) If you do take legal action against

us, you must do so within 12 months of

the date of denial of the claim. Suit

must be brought in accordance with the

provisions of 7 U.S.C. 1508(j).

(c) Your right to recover damages

(compensatory, punitive, or other),

attorney’s fees, or other charges is

limited or excluded by this contract or

by Federal Regulations.

26. Payment and Interest Limitations

(a) Under no circumstances will we be

liable for the payment of damages

(compensatory, punitive, or other),

attorney’s fees, or other charges in

connection with any claim for

indemnity, whether we approve or

disapprove such claim.

(b) We will pay simple interest

computed on the net indemnity

ultimately found to be due by us or by

a final judgment of a court of competent

jurisdiction, from and including the 61st

day after the date you sign, date, and

submit to us the properly completed

claim on our form. Interest will be paid

only if the reason for our failure to

timely pay is NOT due to your failure

to provide information or other material

necessary for the computation or

payment of the indemnity. The interest

rate will be that established by the

Secretary of the Treasury under section

12 of the Contract Disputes Act of 1978

(41 U.S.C. 611) and published in the

Federal Register semiannually on or

about January 1 and July 1 of each year,

and may vary with each publication.

27. Concealment, Misrepresentation or

Fraud

(a) If you have falsely or fraudulently

concealed the fact that you are ineligible

to receive benefits under the Act or if

you or anyone assisting you has

intentionally concealed or

misrepresented any material fact

relating to this policy:

(1) This policy will be voided; and

(2) You may be subject to remedial

sanctions in accordance with 7 CFR part

400, subpart R.

(b) Even though the policy is void,

you may still be required to pay 20

percent of the premium due under the

policy to offset costs incurred by us in

the service of this policy. If previously

paid, the balance of the premium will be

returned.

(c) Voidance of this policy will result

in you having to reimburse all

indemnities paid for the crop year in

which the voidance was effective.

(d) Voidance will be effective on the

first day of the insurance period for the

crop year in which the act occurred and

will not affect the policy for subsequent

crop years unless a violation of this

section also occurred in such crop years.

28. Transfer of Coverage and Right to

Indemnity

If you transfer any part of your share

during the crop year, you may transfer

your coverage rights, if the transferee is

eligible for crop insurance. We will not

be liable for any more than the liability

determined in accordance with your

policy that existed before the transfer

occurred. The transfer of coverage rights

must be on our form and will not be

effective until approved by us in

writing. Both you and the transferee are

jointly and severally liable for the

payment of the premium. The transferee

has all rights and responsibilities under

this policy consistent with the

transferee’s interest.

29. Assignment of Indemnity

You may assign to another party your

right to an indemnity for the crop year.

The assignment must be on our form

and will not be effective until approved

in writing by us. The assignee will have

the right to submit all loss notices and

forms as required by the policy. If you

have suffered a loss from an insurable

cause and fail to file a claim for

indemnity within 60 days after the end

of the insurance period, the assignee

may submit the claim for indemnity not

later than 15 days after the 60-day

period has expired. We will honor the

terms of the assignment only if we can

accurately determine the amount of the

claim. However, no action will lie

against us for failure to do so.

30. Subrogation (Recovery of Loss From

a Third Party)

Since you may be able to recover all

or a part of your loss from someone

other than us, you must do all you can

to preserve this right. If we pay you for

your loss, your right to recovery will, at

our option, belong to us. If we recover

more than we paid you plus our

expenses, the excess will be paid to you.
Federal Register / Vol. 63, No. 134 /Tuesday, July 14, 1998 / Notices 37841

1. Descriptive Headings

The descriptive headings of the

various policy provisions are formulated

for convenience only and are not

intended to affect the construction or

meaning of any of the policy provisions.

32. Notices

(a) All notices required to be given by

you must be in writing and received by

your crop insurance agent within the

designated time unless otherwise

provided by the notice requirement.

Notices required to be given

immediately may be by telephone or in

person and confirmed in writing. Time

of the notice will be determined by the

time of our receipt of the written notice.

If the date by which you are required to

submit a report or notice falls on

Saturday, Sunday, or a Federal holiday,

or, if your agent’s office is, for any

reason, not open for business on the

date you are required to submit such

notice or report, such notice or report

must be submitted on the next business

day.

(b) All notices and communications

required to be sent by us to you will be

mailed to the address contained in your

records located with your crop

insurance agent. Notice sent to such

address will be conclusively presumed

to have been received by you. You

should advise us immediately of any

change of address.

Crop Revenue Coverage

Wheat Crop Provisions

This is a risk management program.

This risk management tool will be

reinsured under the authority provided

by section 508(h) of the Federal Crop

Insurance Act. If a conflict exists among

the policy provisions, the order of

priority is as follows: (1) the Special

Provisions; (2) the Commodity Exchange

Endorsement; (3) these Crop Provisions;

and (4) the Basic Provisions with (1)

controlling (2), etc.

1. Definitions

Adequate Stand. A population of live

plants per unit of acreage which will

produce at least the yield used to

establish your Final Guarantee.

Average Daily Settlement Price. Refer

to the definition contained in the

Commodity Exchange Endorsement—

Wheat.

Calculated Revenue. The production

to count multiplied by the Harvest

Price.

Harvest. Combining or threshing the

insured crop for grain or cutting for hay

or silage on any acreage. A crop which

is swathed prior to combining is not

considered harvested.

Initially planted. The first occurrence

of planting the insured crop on

insurable acreage for the crop year.

Latest final planting date.

(a) The final planting date for springplanted acreage in all counties for

which the Special Provisions designate

a final planting date for spring-planted

acreage only;

(b) The final planting date for fallplanted acreage in all counties for

which the Special Provisions designate

a final planting date for fall-planted

acreage only; or

(c) The final planting date for springplanted acreage in all counties for

which the Special Provisions designate

final planting dates for both springplanted and fall-planted acreage.

Local market price. The cash grain

price per bushel for the U.S. No. 2 grade

of the insured crop offered by buyers in

the area in which you normally market

the insured crop. The local market price

will reflect the maximum limits of

quality deficiencies allowable for the

U.S. No. 2 grade of the insured crop.

Factors not associated with grading

under the Official United States

Standards for Grain, including but not

limited to protein, oil or moisture

content, or milling quality will not be

considered.

Nurse crop (companion crop). A crop

planted into the same acreage as another

crop, that is intended to be harvested

separately, and which is planted to

improve growing conditions for the crop

with which it is grown.

Planted acreage. In addition to the

definition contained in the Basic

Provisions, land on which seed is

initially spread onto the soil surface by

any method and subsequently is

mechanically incorporated into the soil

in a timely manner and at the proper

depth, will be considered planted.

Prevented planting. In lieu of the

definition contained in the Basic

Provisions, failure to plant the insured

crop with proper equipment by the

latest final planting date designated in

the Special Provisions for the insured

crop in the county or by the end of the

late planting period. You must have

been prevented from planting the

insured crop due to an insured cause of

loss that also prevented most producers

from planting on acreage with similar

characteristics in the surrounding area.

Prevented planting guarantee. The

Prevented Planting Guarantee for such

acreage will be that percentage of the

Final Guarantee for timely planted acres

as set forth in section 13(b).

Sales closing date. In lieu of the

definitions contained in the Basic

Provisions, a date contained in the

Special Provisions by which an

application must be filed and by which

you may change your crop insurance

coverage for a crop year. If the Special

Provisions provide a sales closing date

for both winter and spring types of the

insured crop and you plant any

insurable acreage of the winter type, you

may not change your crop insurance

coverage after the sales closing date for

the winter type.

Swathed. Severance of the stem and

grain head from the ground without

removal of the seed from the head and

placing into a windrow.

Wheat. Wheat for grain only.

2. Unit Structure

In addition to the requirements of

section 2(b) of the Basic Provisions, for

wheat only, in addition to, or instead of,

establishing optional units by section,

section equivalent or FSA farm serial

number and by irrigated and nonirrigated practices, optional units may

be established if each optional unit

contains only initially planted winter

wheat or only initially planted spring

wheat. Optional units may be

established in this manner only in

counties having both winter and spring

type final planting dates as designated

in the Special Provisions.

3. Coverage Level and Price Percentage

In addition to the requirements of

section 4 of the Basic Provisions all the

insurable acreage of each crop in the

county insured as grain under this

policy will have the same coverage level

and price percentage elections.

4. Contract Changes

In accordance with section 5 in the

Basic Provisions, the contract change

date is December 31 preceding the

cancellation date for counties with a

March 15 cancellation date and June 30

preceding the cancellation date for all

other counties.

5. Cancellation and Termination Dates

The cancellation and termination

dates are:
37842 Federal Register / Vol. 63, No. 134 /Tuesday, July 14, 1998 / Notices

State and county Cancellation date Termination date

All Colorado counties except Alamosa, Archuleta, Conejos, Costilla, Custer, Delta, Dolores, Eagle, Garfield, Grand, La Plata, Mesa, Moffat, Montezuma, Montrose, Ouray, Pitkin, Rio Blanco, Rio Grande,

Routt, Saguache, and San Miguel Counties; all Iowa Counties except Plymouth, Cherokee, Buena

Vista, Pocahontas, Humbolt, Wright, Franklin, Butler, Black Hawk, Buchanan, Delaware, and Dubuque

Counties and all Iowa counties north thereof; all Wisconsin Counties except Trempealeau, Jackson,

Wood, Portage, Waupaca, Outagamie, Brown, and Kewaunee Counties and all Wisconsin counties

north and west thereof; and all other states except Alaska, Arizona, California, Connecticut, Idaho,

Maine, Massachusetts, Minnesota, Montana, Nevada, New Hampshire, New York, North Dakota, Oregon, Rhode Island, South Dakota, Utah, Vermont, Washington, and Wyoming.

September 30 .... September 30.

Archuleta, Custer, Delta, Dolores, Eagle, Garfield, Grand, La Plata, Mesa, Moffat, Montezuma, Montrose,

Ouray, Pitkin, Rio Blanco, Routt, and San Miguel Counties, Colorado; Connecticut; Idaho; Plymouth,

Cherokee, Buena Vista, Pocahontas, Humboldt, Wright, Franklin, Butler, Black Hawk, Buchanan, Delaware, and Dubuque Counties, Iowa, and all Iowa counties north thereof; Massachusetts; all Montana

counties except Daniels, Roosevelt, Sheridan, and Valley Counties; New York; Oregon; Rhode Island;

all South Dakota counties except Harding, Perkins, Corson, Walworth, Edmonds, Faulk, Spink, Beadle, Jerauld, Aurora, Douglas, and Bon Homme Counties and all South Dakota counties north and

east thereof; Washington; and all Wyoming counties except Big Horn, Fremont, Hot Springs, Park, and

Washakie Counties.

September 30 .... November 30.

Matanuska-Susitna County, Alaska; Arizona; California; Nevada; and Utah ................................................ October 31 ......... November 30.

All Alaska Counties except Matanuska-Susitna County; Alamosa, Conejos, Costilla, Rio Grande, and

Saguache Counties, Colorado; Maine; Minnesota; Daniels, Roosevelt, Sheridan, and Valley Counties,

Montana; New Hampshire; North Dakota; Harding, Perkins, Corson, Walworth, Edmunds, Faulk,

Spink, Beadle, Jerauld, Aurora, Douglas, and Bon Homme Counties, South Dakota, and all South Dakota counties north and east thereof; Vermont; Trempealeau, Jackson, Wood, Portage, Waupaca,

Outagamie, Brown, and Kewaunee Counties, Wisconsin, and all Wisconsin counties north and west

thereof; Big Horn, Fremont, Hot Springs, Park, and Washakie Counties, Wyoming.

March 15 ............ March 15.

6. Insured Crop

(a) In accordance with section 9 of the

Basic Provisions, the crop insured will

be wheat you elect to insure, that is

grown in the county on insurable

acreage, and for which premium rates

are provided by the actuarial

documents:

(1) In which you have a share;

(2) That is planted for harvest as

grain;

(3) That is not:

(i) Interplanted with another crop;

(ii) Planted into an established grass

or legume; or

(iii) Planted as a nurse crop, unless

planted as a nurse crop for new forage

seeding, but only if seeded at a normal

rate and intended for harvest as grain.

(b) If you anticipate destroying any

acreage prior to harvest you:

(1) May report all planted acreage

when you report your acreage for the

crop year and specify any acreage to be

destroyed as uninsurable acreage. (By

doing so, no coverage will be considered

to have attached on the specified

acreage and no premium will be due for

such acreage. If you do not destroy such

acreage, you will be subject to the

under-reporting provisions contained in

section 7 of the Basic Provisions); or

(2) If the actuarial documents provide

a reduced premium rate for acreage

destroyed by a date designated in the

Special Provisions, you may report all

planted acreage as insurable when you

report your acreage for the crop year.

Premium will be due on all the acreage.

Your premium amount will be reduced

by the amount shown on the actuarial

documents for any acreage you destroy

prior to a date designated in the Special

Provisions if you do not claim an

indemnity on such acreage. In

accordance with section 15(b) of the

Basic Provisions, you must obtain our

consent before and give us notice after

you destroy any of the insured crop so

your acreage report can be revised to

make you eligible for this reduction in

premium.

(c) In counties for which the Wheat

Special Provisions designate both fall

and spring final planting dates, you may

elect a winter wheat coverage

endorsement. This endorsement

provides two options for alternative

coverage for wheat that is damaged

between the fall final planting date and

the spring final planting date. Coverage

under the endorsement will be effective

only if you designate the coverage

option you elect by executing the

endorsement by the sales closing date

for winter wheat in the county.

7. Insurance Period

In lieu of the requirements under

section 12 of the Basic Provisions, and

subject to any provisions provided by

the Winter Wheat Coverage

Endorsement if you have elected such

endorsement, the insurance period is as

follows:

(a) Insurance attaches on each unit or

part thereof on the later of the date we

accept your application or the date the

insured crop is planted subject to the

following limitations:

(1) The acreage must be planted on or

before the final planting date designated

in the Special Provisions for the type

(winter or spring) except as allowed in

section 12 of these Crop Provisions and

section 17 of the Basic Provisions.

(2) Whenever the Special Provisions

designate only a fall final planting date,

any acreage of winter wheat damaged

before such final planting date, to the

extent that producers in the area would

normally not further care for the crop,

must be replanted to a winter type of the

insured crop unless we agree that

replanting is not practical.

(3) Whenever the Special Provisions

designate both fall and spring final

planting dates, winter wheat planted on

or before the fall final planting date

which is damaged:

(i) Before the fall planting final

planting date, to the extent that

producers in the area would normally

not further care for the crop, must be

replanted to a winter type of the insured

crop unless we agree that replanting is

not practical.

(ii) On or after the fall final planting

date, but before the spring final planting

date, to the extent that producers in the

area would normally not further care for

the crop, must be replanted to an

appropriate variety of the insured crop

unless we agree that replanting is not

practical.

If you have elected coverage under

one of the available Winter Wheat

Coverage Endorsement Options

available in the county, the insurance

period for wheat will be in accordance

with the selected option.
Federal Register / Vol. 63, No. 134 /Tuesday, July 14, 1998 / Notices 37843

(4) Whenever the Special Provisions

designate only a spring final planting

date:

(i) Any acreage of spring wheat

damaged before such final planting date,

to the extent that producers in the area

would normally not further care for the

crop, must be replanted to a spring type

of the insured crop unless we agree that

replanting is not practical; and

(ii) Whenever the Special Provisions

designate only a spring final planting

date, any acreage of fall planted wheat

is not insured unless you request such

coverage and we agree in writing that

the acreage has an adequate stand in the

spring to produce the yield used to

determine your Final Guarantee.

Insurance will then attach to acreage

having an adequate stand on the earlier

of the spring final planting date or the

date we agree to accept the acreage for

insurance. If such fall planted acreage is

not to be insured it must be recorded on

the acreage report as an uninsured fall

planted crop.

(b) Insurance ends on each unit at the

earliest of:

(1) Total destruction of the insured

crop on the unit;

(2) Harvest of the unit;

(3) Final adjustment of a loss on the

unit;

(4) September 25 following planting

in Alaska, or October 31 of the calendar

year in which the crop is normally

harvested in all other states; or

(5) Abandonment of the crop on the

unit.

8. Causes of Loss

In addition to the provisions under

section 13 of the Basic Provisions, any

loss covered by this policy must occur

within the insurance period. The

specific causes of loss for wheat are:

(a) Adverse weather conditions;

(b) Fire;

(c) Insects, but not damage allowed

because of insufficient or improper

application of pest control measures;

(d) Plant disease, but not damage

allowed because of insufficient or

improper application of disease control

measures;

(e) Wildlife;

(f) Earthquake;

(g) Volcanic eruption;

(h) Failure of the irrigation water

supply; or

(i) A Harvest Price that is less than the

Base Price.

9. Replanting Payments

(a) A replant payment for wheat only

is allowed as follows:

(1) You comply with all requirements

regarding replanting payments

contained under section 14 of the Basic

Provisions and in any winter wheat

coverage endorsement for which you are

eligible and which you have elected;

(2) The wheat must be damaged by an

insurable cause of loss to the extent that

the remaining stand will not produce at

least 90 percent of the Minimum

Guarantee for the acreage;

(3) The acreage must have been

initially planted to spring wheat in

those counties with only a spring final

planting date;

(4) The damage must occur after the

fall final planting date in those counties

where both a fall and spring final

planting date are designated;

(5) Replanting must take place not

later than 25 days after the spring final

planting date; and

(6) The replanted wheat must be

seeded at a rate that is normal for

initially planted wheat (if new seed is

planted at a reduced seeding rate into a

partially damaged stand of wheat, the

acreage will not be eligible for a

replanting payment.)

(b) No replanting payment will be

made for acreage initially planted to

winter wheat in any county for which

the Special Provisions contain only a

fall final planting date.

(c) In accordance with section 14(c) of

the Basic Provisions, the maximum

amount of the replanting payment per

acre will be the lesser of 20 percent of

the Minimum Guarantee or 3 bushels,

times the Base Price times your share.

(d) When wheat is replanted using a

practice that is uninsurable for an

original planting, the liability for the

unit will be reduced by the amount of

the replanting payment. The premium

amount will not be reduced.

10. Duties In The Event of Damage or

Loss

In addition to your duties under

section 15 of the Basic Provisions, if you

initially discover damage to any insured

crop within 15 days of, or during

harvest, you must leave representative

samples of the unharvested crop for our

inspection. The samples must be at least

10 feet wide and the entire length of

each field in the unit, and must not be

harvested or destroyed until the earlier

of our inspection or 15 days after

harvest of the balance of the unit is

completed.

11. Settlement of Claim

(a) We will determine your loss on a

unit basis. In the event you are unable

to provide separate acceptable

production records:

(1) For any optional unit, we will

combine all optional units for which

acceptable records of production were

not provided; or

(2) For any basic unit, we will allocate

any commingled production to such

units in proportion to our liability on

the harvested acreage for each unit.

(b) In the event of loss or damage

covered by this policy, we will settle

your claim on any insured basic or

optional unit of wheat by:

(1) Multiplying the insured acreage of

the crop by the Final Guarantee;

(2) Subtracting the Calculated

Revenue from the result of section

11(b)(1); and

(3) Multiplying the result of 11(b)(2)

by your share.

If the result of section 11(b)(3) is

greater than zero, an indemnity will be

paid. If the result of section 11(b)(3) is

less than zero, no indemnity will be

due.

(c) In the event of loss or damage

covered by this policy, we will settle

your claim on any insured enterprise

unit by:

(1) Multiplying the insured acreage of

the crop by the Final Guarantee for each

basic unit or optional unit within the

enterprise unit;

(2) For each basic unit or optional

unit in 11(c)(1), compute the Calculated

Revenue;

(3) Subtract each result in section

11(c)(2) from the respective result of

section 11(c)(1);

(4) Multiplying each result of section

11(c)(3) by your share; and

(5) Total the results of section

11(c)(4).

If the result of section 11(c)(5) is

greater than zero, an indemnity will be

paid. If the result of section 11(c)(5) is

less than zero, no indemnity will be

due.

(d) The total production (bushels) to

count from all insurable acreage on the

unit will include:

(1) All appraised production as

follows:

(i) Not less than that amount of

production that when multiplied by the

Harvest Price equals the Final Guarantee

for acreage:

(A) Which is abandoned;

(B) Put to another use without our

consent;

(C) Damaged solely by uninsured

causes; or

(D) For which you fail to provide

records of production that are

acceptable to us;

(ii) Production lost due to uninsured

causes;

(iii) Unharvested production (mature

unharvested production may be

adjusted for quality deficiencies and

excess moisture in accordance with

section 11(d));

(iv) Potential production on insured

acreage you intend to put to another use
37844 Federal Register / Vol. 63, No. 134 /Tuesday, July 14, 1998 / Notices

or abandon and no longer care for, if

you and we agree on the appraised

amount of production. Upon such

agreement, the insurance period for that

acreage will end when you put the

acreage to another use or abandon the

crop. If:

(A) Agreement on the appraised

amount of production is not reached,

you may elect to continue to care for the

crop, or we will give you consent to put

the acreage to another use if you agree

to leave intact, and provide sufficient

care for, representative samples of the

crop in locations acceptable to us. The

amount of production to count for such

acreage will be based on the harvested

production or appraisals from the

samples at the time harvest should have

occurred. If you do not leave the

required samples intact, or you fail to

provide sufficient care for the samples,

our appraisal made prior to giving you

consent to put the acreage to another

use will be used to determine the

amount of production to count.

(B) You elect to continue to care for

the crop, we will determine the amount

of production to count for the acreage

using the harvested production, or our

reappraisal if additional damage occurs

and the crop is not harvested.

(2) All harvested production from the

insurable acreage.

(e) Mature wheat production may be

adjusted for excess moisture and quality

deficiencies.

(1) Production will be reduced by .12

percent for each .1 percentage point of

moisture in excess of 13.5 percent for

wheat. We may obtain samples of the

production to determine the moisture

content.

(2) Production will be eligible for

quality adjustment if:

(i) Deficiencies in quality, in

accordance with the Official United

States Standards for Grain, result in

wheat not meeting the grade

requirements for U.S. No. 4 (grades U.S.

No. 5 or worse) because of test weight,

total damaged kernels (excluding heat

damage), shrunken or broken kernels, or

defects (excluding foreign material and

heat damage), or grading garlicky, light

smutty, smutty or ergoty;

(ii) Substances or conditions are

present, including mycotoxins, that are

identified by the Food and Drug

Administration or other public health

organizations of the United States as

being injurious to human or animal

health.

(3) Quality will be a factor in

determining your loss only if:

(i) The deficiencies, substances, or

conditions resulted from a cause of loss

against which insurance is specified in

section 8;

(ii) All determinations of these

deficiencies, substances, or conditions

are made using samples of the

production obtained by us or by a

disinterested third party approved by

us; and

(iii) The samples are analyzed by a

grain grader licensed under the

authority of the United States Grain

Standards Act or the United States

Warehouse Act with regard to

deficiencies in quality, or by a

laboratory approved by us with regard

to substances or conditions injurious to

human or animal health. Test weight for

quality adjustment purposes may be

determined by our loss adjuster.

(4) Production of wheat that is eligible

for quality adjustment, as specified in

sections 11(d)(2) and 11(d)(3), will be

reduced by the quality adjustment factor

contained in the Special Provisions.

(f) Any production harvested from

plants growing in the insured crop may

be counted as production of the insured

crop on a weight basis.

12. Late Planting

A late planting period is not

applicable to fall-planted wheat. Any

winter wheat that is planted after the

fall final planting date in counties for

which the Special Provisions also

contain a final planting date for spring

wheat will not be insured. Any winter

wheat that is planted after the fall final

planting date in counties for which the

Special Provisions contain only a fall

final planting date will not be insured

unless you were prevented from

planting the winter wheat by the fall

final planting date. Such acreage will be

insurable, and the Final Guarantee and

premium for the acreage will be

determined in accordance with sections

17(b) and (c) of the Basic Provisions.

13. Prevented Planting

(a) In addition to the provisions

contained in section 18 of the Basic

Provisions, in counties for which the

Special Provisions designate a spring

final planting date, your prevented

planting Final Guarantee will be based

on your approved yield for springplanted acreage of the insured crop.

(b) Your prevented planting coverage

will be 60 percent of your Final

Guarantee for timely planted acreage.

You may increase your preventing

planting coverage to a level specified in

the actuarial documents by paying an

additional premium.

Crop Revenue Coverage

Winter Wheat Coverage Endorsement

Crop Revenue Coverage

Optional Endorsement

Winter Wheat Coverage Endorsement

(This is a Continuous Endorsement)

Insured’s Name and Address

lllllllllllllllllllll

lllllllllllllllllllll

lllllllllllllllllllll

Town State Zip Code

Agency Name and Address

lllllllllllllllllllll

lllllllllllllllllllll

lllllllllllllllllllll

Town State Zip Code

Policy No: lllllllllllllll

Crop Year Effective: lllllllllll

OPTION SELECTED (Check One and

sign below) AllBll

(a) In return for payment of the

additional premium designated in the

County Actuarial Table, this

endorsement is attached to and made a

part of your Crop Revenue Coverage

policy provisions subject to the terms

and conditions described herein.

(b) This endorsement is available only

in counties for which the Special

Provisions designate both a fall final

planting date and a spring final planting

date.

(c) This endorsement modifies the

provisions of sections 7 and 11 of the

Crop Revenue Coverage Wheat Crop

Provisions (Wheat Crop Provisions).

(1) You must have a Crop Revenue

Coverage policy in force and elect to

insure wheat under that policy.

(2) You may select either Option A or

Option B. Failure to select either Option

A or Option B means that you have

rejected both Options and this

endorsement would be void.

(3) Insurance Period. Coverage under

this endorsement begins on the later of

the date we accept your application for

coverage or on the fall final planting

date designated in the Special

Provisions. Coverage ends on the spring

final planting date designated in the

Special Provisions.

(4) The provisions under section 14 of

the Crop Revenue Coverage Basic

Provisions (Basic Provisions) are

amended to require that all notices of

damage must be provided to us by the

spring final planting date designated in

the Special Provisions.

Option A

(30 Percent Coverage and Acreage

Release)

Whenever any winter wheat is

damaged during the insurance period

(see section (c)(3) above), and at least 20

acres or 20 percent of the acreage in the
Federal Register / Vol. 63, No. 134 /Tuesday, July 14, 1998 / Notices 37845

unit, whichever is less, does not have an

adequate stand to produce at least 90

percent of the Minimum Guarantee for

the acreage (to calculate the actual

percentage, multiply the appraised

production determined in accordance

with section 11(c)(1) of the applicable

Wheat Crop Provisions times the Base

Price and then divide that quantity by

the Minimum Guarantee), you may, at

your option, take one of the following

actions:

(a) Destroy the remaining crop on

such acreage. By doing so, you agree to

accept an amount of Calculated Revenue

to count against the unit Final

Guarantee equal to 70 percent of the

Final Guarantee for the damaged

acreage, or an appraisal determined in

accordance with section 11(c)(1) of the

applicable Wheat Crop Provisions if

such an appraisal results in a greater

amount of Calculated Revenue. This

amount will be considered Calculated

Revenue in determining any final

indemnity on the unit and will be used

to settle your claim as described in the

provisions under section 11 (Settlement

of Claim) of the applicable Wheat Crop

Provisions. You may use such acreage

for any purpose, including planting and

separately insuring any other crop. If

you elect to utilize such acreage for the

production of spring wheat, you must:

(1) Plant the spring wheat in a manner

which results in a clear and discernible

break in the planting pattern at the

boundary between it and any remaining

winter wheat; and

(2) Store or market the production

from such acreage in such a manner

which permits us to verify the amount

of spring wheat production separately

from any winter wheat production. In

the event you are unable to provide

records of production that are

acceptable to us, the spring wheat

acreage will be considered to be a part

of the original winter wheat unit. If you

elected to insure the spring wheat

acreage as a separate optional unit, any

premium amount for such acreage will

be considered earned and payable to us.

(b) Continue to care for the damaged

crop. By doing so, coverage will

continue under the terms of the Basic

Provisions, applicable Wheat Crop

Provisions, and this Option.

(c) Replant the acreage to an

appropriate variety of wheat, it if is

practical, and receive a replanting

payment in accordance with the terms

of section 9 (Replanting Payments) of

the applicable Wheat Crop Provisions.

By doing so, coverage will continue

under the terms of the Basic Provisions,

the applicable Wheat Crop Provisions,

and this Option, and the Final

Guarantee for winter wheat will remain

in effect.

lllllllllllllllllllll

Agent’s Signature Date

Option B

(With Full Winter Damage Coverage)

Whenever any winter wheat is

damaged during the insurance period

(see section (c)(3) above), and at least 20

acres or 20 percent of the acreage in the

unit, whichever is less does not have an

adequate stand to produce at least 90

percent of the Minimum Guarantee for

the acreage (to calculate the actual

percentage, multiply the appraised

production determined in accordance

with section 11(c)(1) of the applicable

Wheat Crop Provisions times the Base

Price and then divide that quantity by

the Minimum Guarantee), you may, at

your option, take one of the following

actions:

(a) Continue to care for the damaged

crop. By doing so, coverage will

continue under the terms of the Basic

Provisions, the applicable Wheat Crop

Provisions, and this Option.

(b) Replant the acreage to an

appropriate variety of wheat, if it is

practical, and receive a replanting

payment in accordance with the terms

of section 9 (Replanting Payments) of

the applicable Wheat Crop Provisions.

By doing so, coverage will continue

under the terms of the Basic Provisions,

the applicable Wheat Crop Provisions,

and this Option, and the Final

Guarantee for winter wheat will remain

in effect.

(c) Accept our appraisal of the crop on

the damaged acreage as Calculated

Revenue to count against the Final

Guarantee for the damaged acreage,

destroy the remaining crop on such

acreage, and be eligible for any

indemnity due under the terms of the

Basic Provisions and the applicable

Wheat Crop Provisions. The appraisal

will be considered Calculated Revenue

in determining any final indemnity on

the unit and will be used to settle your

claim as described in the provisions of

section 11 (Settlement of Claim) of the

applicable Wheat Crop Provisions. You

may use such acreage for any purpose,

including planting and separately

insuring any other crop. If you elect to

utilize such acreage for the production

of spring wheat, you must:

(1) Plant the spring wheat in a manner

which results in a clear and discernible

break in the planting pattern at the

boundary between it and any remaining

winter wheat; and

(2) Store or market the production

from such acreage in a manner which

permits us to verify the amount of

spring wheat production separately

from any winter wheat production.

In the event you are unable to provide

records of production that are

acceptable to us, the spring wheat

acreage will be considered to be a part

of the original winter wheat unit. If you

elected to insure the spring wheat

acreage as a separate optional unit, any

premium amount for such acreage will

be considered earned and payable to us.

lllllllllllllllllllll

Agent’s Signature Date

Crop Revenue Coverage

Commodity Exchange Endorsement

Crop Revenue Coverage

Mandatory Actuarial Document

Endorsement

Commodity Exchange Endorsement—

Wheat

(This is a Continuous Endorsement)

If a conflict exists among the policy

provisions, the order of priority is as

follows: (1) the Special Provisions; (2)

this Commodity Exchange Endorsement;

(3) the Crop Provisions; and (4) the

Basic Provisions, with (1) controlling

(2), etc.

How this endorsement affects your

coverage:

(I) This endorsement is attached to

and made a part of your Crop Revenue

Coverage (CRC) Wheat crop policy

provisions and actuarial documents,

subject to the terms and conditions

described herein.

(II) This endorsement specifies how,

where, and when commodity prices for

your CRC Wheat policy are determined.

(III) This endorsement defines the

Average Daily Settlement Price, as used

in the Base Price and Harvest Price, as—

The average calculated by summing all

the daily settlement prices for the

contract specified in the applicable Base

Price and/or Harvest Price definition

(established on full active trading days),

during the month specified in the

applicable Base Price and/or Harvest

Price definition, and dividing that sum

by the total number of days included in

the sum. The average must include at

least fifteen (15) days and each day

included in the average must be a full

active trading day for the contract

specified in the applicable Base Price

and/or Harvest Price definition. A full

active trading day is any day on which

there are fifty (50) or more open interest

contracts of the contract specified in the

Base Price and/or Harvest Price

definition. If there are less than fifteen

(15) full active trading days for the

contract specified in the applicable Base

Price and/or Harvest Price definition,

during the month specified in the

applicable Base Price and/or Harvest
37846 Federal Register / Vol. 63, No. 134 /Tuesday, July 14, 1998 / Notices

Price definition, then additional daily

settlement prices, established on full

active trading days, for the contract

immediately prior to the contract

specified in the applicable Base Price

and/or Harvest Price definition, during

the month specified in the applicable

Base Price and/or Harvest Price

definition, will be used until there are

fifteen (15) prices from fifteen (15) full

active trading days included in the

average.

(IV) This endorsement defines the

Base Price and Harvest Price as shown

in Section 1 of the Crop Revenue

Coverage Basic Provisions by wheat

type and state as follows:

Winter Wheat—(Insured as Winter

Wheat), Chicago Board of Trade (CBOT)

Illinois, Indiana, Michigan, Ohio, and

Wisconsin

Base Price (CBOT)—The August 15 to

September 14 pre-harvest year’s average

daily settlement price for the harvest

year’s CBOT July soft red winter wheat

futures contract (rounded to the nearest

whole cent) multiplied times the

selected Price Percentage and rounded

to the nearest whole cent. The available

Price Percentages and subsequent Base

Price will be released as an Actuarial

Document Addendum (Special

Provisions) by September 20 of the preharvest year.

Harvest Price (CBOT)—The July 15 to

August 14 harvest year’s average daily

settlement price for the harvest year’s

CBOT September soft red winter wheat

futures contract (rounded to the nearest

whole cent) multiplied times the

selected Price Percentage and rounded

to the nearest whole cent. The Harvest

Price cannot be less than the Base Price

minus two dollars ($2.00), or greater

than the Base Price plus two dollars

($2.00). The Price Percentage used to

calculate the Harvest Price is equal to

the selected Price Percentage used to

calculate the Base Price. The Harvest

Price will be released as an Actuarial

Document Addendum (Special

Provisions) by August 20 of the harvest

year.

Winter Wheat—(Insured as Winter

Wheat), (CBOT)

Alabama, Georgia, Kentucky, Louisiana,

Mississippi, North Carolina, South

Carolina, Tennessee, and Virginia

Base Price (CBOT)—The August 15 to

September 14 pre-harvest year’s average

daily settlement price for the harvest

year’s CBOT July soft red winter wheat

futures contract (rounded to the nearest

whole cent) multiplied times the

selected Price Percentage and rounded

to the nearest whole cent. The available

Price Percentages and subsequent Base

Price will be released as an Actuarial

Document Addendum (Special

Provisions) by September 20 of the preharvest year.

Harvest Price (CBOT)—The June

harvest year’s average daily settlement

price for the harvest year’s CBOT July

soft red winter wheat futures contract

(rounded to the nearest whole cent)

multiplied times the selected Price

Percentage and rounded to the nearest

whole cent. The Harvest Price cannot be

less than the Base Price minus two

dollars ($2.00), or greater than the Base

Price plus two dollars ($2.00). The Price

Percentage used to calculate the Harvest

Price is equal to the selected Price

Percentage used to calculate the Base

Price. The Harvest Price will be released

as an Actuarial Document Addendum

(Special Provisions) by July 10 of the

harvest year.

Winter Wheat—(Insured as Winter

Wheat), Kansas City Board of Trade

(KCBOT)

Iowa, Montana, Nebraska, South Dakota,

and Wyoming

Base Price (KCBOT)—The August 15

to September 14 pre-harvest year’s

average daily settlement price for the

harvest year’s KCBOT July hard red

winter wheat futures contract (rounded

to the nearest whole cent) multiplied

times the selected Price Percentage and

rounded to the nearest whole cent. The

available Price Percentages and

subsequent Base Price will be released

as an Actuarial Document Addendum

(Special Provisions) by September 20 of

the pre-harvest year.

Harvest Price (KCBOT)—The July 15

to August 14 harvest year’s average

daily settlement price for the harvest

year’s KCBOT September hard red

winter wheat futures contract (rounded

to the nearest whole cent) multiplied

times the selected Price Percentage and

rounded to the nearest whole cent. The

Harvest Price cannot be less than the

Base Price minus two dollars ($2.00), or

greater than the Base Price plus two

dollars ($2.00). The Price Percentage

used to calculate the Harvest Price is

equal to the selected Price Percentage

used to calculate the Base Price. The

Harvest Price will be released as an

Actuarial Document Addendum

(Special Provisions) by August 20 of the

harvest year.

Winter Wheat—(Insured as Winter

Wheat), (KCBOT)

Arizona, Arkansas, Colorado, Kansas,

Missouri, New Mexico, Oklahoma, and

Texas

Base Price (KCBOT)—The August 15

to September 14 pre-harvest year’s

average daily settlement price for the

harvest year’s KCBOT July hard red

winter wheat futures contract (rounded

to the nearest whole cent) multiplied

times the selected Price Percentage and

rounded to the nearest whole cent. The

available Price Percentages and

subsequent Base Price will be released

as an Actuarial Document Addendum

(Special Provisions) by September 20 of

the pre-harvest year.

Harvest Price (KCBOT)—The June

harvest year’s average daily settlement

price for the harvest year’s KCBOT July

hard red winter wheat futures contract

(rounded to the nearest whole cent)

multiplied times the selected Price

Percentage and rounded to the nearest

whole cent. The Harvest Price cannot be

less than the Base Price minus two

dollars ($2.00), or greater than the Base

Price plus two dollars ($2.00). The Price

Percentage used to calculate the Harvest

Price is equal to the selected Price

Percentage used to calculate the Base

Price. The Harvest Price will be released

as an Actuarial Document Addendum

(Special Provisions) by July 10 of the

harvest year.

Spring Wheat—(Insured as Spring

Wheat in Counties With a 3/15

Cancellation Date), Minneapolis Grain

Exchange (MGE)

Colorado, Iowa, Minnesota, Montana,

North Dakota, South Dakota, Wisconsin,

and Wyoming

Base Price (MGE)—The February

harvest year’s average daily settlement

price for the harvest year’s MGE

September hard red spring wheat

futures contract (rounded to the nearest

whole cent) multiplied times the

selected Price Percentage and rounded

to the nearest whole cent. The available

Price Percentages and subsequent Base

Price will be released as an Actuarial

Document Addendum (Special

Provisions) by March 10 of the harvest

year.

Harvest Price (MGE)—The August

harvest year’s average daily settlement

price for the harvest year’s MGE

September hard red spring wheat

futures contract (rounded to the nearest

whole cent) multiplied times the

selected Price Percentage and rounded

to the nearest whole cent. The Harvest

Price cannot be less than the Base Price

minus two dollars ($2.00), or greater
Federal Register / Vol. 63, No. 134 /Tuesday, July 14, 1998 / Notices 37847

than the Base Price plus two dollars

($2.00). The Price Percentage used to

calculate the Harvest Price is equal to

the selected Price Percentage used to

calculate the Base Price. The Harvest

Price will be released as an Actuarial

Document Addendum (Special

Provisions) by September 10 of the

harvest year.

Spring Wheat—(Insured as Spring

Wheat in Counties With a 9/30

Cancellation Date), (MGE)

Colorado, Iowa, Montana, South Dakota

and Wyoming

Base Price (KCBOT)—The August 15

to September 14 pre-harvest year’s

average daily settlement price for the

harvest year’s KCBOT July hard red

winter wheat futures contract (rounded

to the nearest whole cent) multiplied

times the selected Price Percentage and

rounded to the nearest whole cent. The

available Price Percentages and

subsequent Base Price will be released

as an Actuarial Document Addendum

(Special Provisions) by September 20 of

the pre-harvest year.

Harvest Price (MGE)—The August

harvest year’s average daily settlement

price for the harvest year’s MGE

September hard red spring wheat

futures contract (rounded to the nearest

whole cent) multiplied times the

selected Price Percentage and rounded

to the nearest whole cent. The Harvest

Price cannot be less than the Base Price

minus two dollars ($2.00), or greater

than the Base Price plus two dollars

($2.00). The Price Percentage used to

calculate the Harvest Price is equal to

the selected Price Percentage used to

calculate the Base Price. The Harvest

Price will be released as an Actuarial

Document Addendum (Special

Provisions) by September 10 of the

harvest year.

Wheat—Portland Grain Exchange, (PGE)

California, Idaho, Oregon, Utah, and

Washington

Base Price (PGE)—The Portland Price

multiplied times the selected Price

Percentage and rounded to the nearest

whole cent. The Portland Price equals

the August 15 to September 14 preharvest year’s average daily settlement

price for the harvest year’s CBOT

September soft red winter wheat futures

contract (rounded to the nearest whole

cent) plus an adjustment equal to the

current five-year average difference

between the August average daily

settlement price for the nearby CBOT

September soft red winter wheat futures

contract (rounded to the nearest whole

cent) and the August average daily

settlement price for the PGE soft white

wheat contract (rounded to the nearest

whole cent). The available Price

Percentages and subsequent Base Price

will be released as an Actuarial

Document Addendum (Special

Provisions) by September 20 of the preharvest year.

Harvest Price (PGE)—The August

harvest year’s average daily settlement

price for the PGE soft white wheat

contract (rounded to the nearest whole

cent) multiplied times the selected Price

Percentage and rounded to the nearest

whole cent. The Harvest Price cannot be

less than the Base Price minus two

dollars ($2.00), or greater than the Base

Price plus two dollars ($2.00). The Price

Percentage used to calculate the Harvest

Price is equal to the selected Price

Percentage used to calculate the Base

Price. The Harvest Price will be released

as an Actuarial Document Addendum

(Special Provisions) by September 10 of

the harvest year.

Durum Wheat—(Insured as Durum

Wheat in Counties With a 3⁄15

Cancellation Date), (MGE)

North Dakota and Montana

Base Price (MGE)—The Northern

Durum Price multiplied times the

selected Price Percentage and rounded

to the nearest whole cent. The Northern

Durum Price equals the February

harvest year’s average daily settlement

price for the harvest year’s MGE

September hard red spring wheat

futures contract (rounded to the nearest

whole cent) plus an adjustment equal to

the current five-year average difference

between the August average daily

settlement price for top milling durum

wheat, as reported by the MGE (rounded

to the nearest whole cent) and the

August average daily settlement price

for the nearby MGE September hard red

spring wheat futures contract (rounded

to the nearest whole cent). The available

Price Percentages and subsequent Base

Price will be released as an Actuarial

Document Addendum (Special

Provisions) by March 10 of the harvest

year.

Harvest Price (MGE)—The August

harvest year’s average daily settlement

price for top milling durum wheat as

reported by the MGE (rounded to the

nearest whole cent) multiplied times the

selected Price Percentage and rounded

to the nearest whole cent. The Harvest

Price cannot be less than the Base Price

minus two dollars ($2.00), or greater

than the Base Price plus two dollars

($2.00). The Price Percentage used to

calculate the Harvest Price is equal to

the selected Price Percentage used to

calculate the Base Price. The Harvest

Price will be released as an Actuarial

Document Addendum (Special

Provisions) by September 10 of the

harvest year.

Durum Wheat—(Insured as Durum

Wheat in Counties With a 10⁄31

Cancellation Date), (MGE)

Arizona and California

Base Price (MGE)—The Southern

Durum Price multiplied times the

selected Price Percentage and rounded

to the nearest whole cent. The Southern

Durum Price equals the September 15 to

October 14 pre-harvest year’s average

daily settlement price for the harvest

year’s CBOT September soft red winter

wheat futures contract (rounded to the

nearest whole cent) plus an adjustment

equal to the current five-year average

difference between the August average

daily settlement price for top milling

durum wheat as reported by the MGE

(rounded to the nearest whole cent) and

the August average daily settlement

price for the nearby CBOT September

soft red winter wheat futures contract

(rounded to the nearest whole cent). The

available Price Percentages and

subsequent Base Price will be released

as an Actuarial Document Addendum

(Special Provisions) by October 20 of

the pre-harvest year.

Harvest Price (MGE)—The August

harvest year’s average daily settlement

price for top milling durum wheat as

reported by the MGE (rounded to the

nearest whole cent) multiplied times the

selected Price Percentage and rounded

to the nearest whole cent. The Harvest

Price cannot be less than the Base Price

minus two dollars ($2.00), or greater

than the Base Price plus two dollars

($2.00). The Price Percentage used to

calculate the Harvest Price is equal to

the selected Price Percentage used to

calculate the Base Price. The Harvest

Price will be released as an Actuarial

Document Addendum (Special

Provisions) by September 10 of the

harvest year.

All other terms and conditions of the

Policy remain unchanged.

Signed in Washington, D.C., on July 8,

1998.

Kenneth D. Ackerman,

Manager, Federal Crop Insurance

Corporation.

[FR Doc. 98–18727 Filed 7–13–98; 8:45 am]

BILLING CODE 3410–08–P